Business Interruption (Fire Damage)

A fire in nearby premises caused smoke damage to stocks of fabric held by the insured. A multi-million pound claim was made for consequential loss of sales/profits, based on a report by one of the ‘big four’ international accounting firms. Topping Partnership’s investigation showed that the decline in sales/profits following the fire was attributable to external factors and assessed the loss at only a fraction of the amount claimed. After just one day of a trial listed for three weeks the claim was effectively withdrawn.