Convenience store fire - full settlement for BI and refurbishments
Malli Stores is a successful convenience store in Farnborough. It was extensively damaged by fire and smoke following an electrical fault and business was severely disrupted. While the owner, Mr Malli, was able to continue to supply newspapers, he could only sell a few products from trestle tables outside the store.
Mr Malli put together an insurance claim but became very concerned at the lack of progress. In particular, he had built up a successful business with a good customer base, and was worried that the delay in re-opening the business would mean that they would never come back.
In addition, Mr Malli was not happy with the contractor nor with the building specification put forward by the loss adjuster. He felt this was cutting corners to reduce the insurance company’s liability.
He therefore turned to Morgan Clark to take over the claim on his behalf.
Morgan Clark quickly negotiated interim funds to maintain temporary trading and to pay wages. The contractor was put on hold while a specialist chartered surveyor reviewed and amended the building specification in accordance with Mr Malli’s wishes.
The loss adjuster’s offer for contents and stock was rejected by Morgan Clark as it was too low. Morgan Clark prepared a revised claim and negotiated an improved settlement. The final figure was several thousand pounds more than that originally offered by the loss adjuster.
Finally, the building was completely refurbished. Mr Malli took advantage of this opportunity to make some much-needed alterations, which were cost-effectively carried out at the same time.
However, six months after the store resumed trading, turnover had still not returned to the level before the fire. The insurance company insisted this was not due to the fire and refused to pay for any further loss of profits. Morgan Clark argued on Mr Malli’s behalf and finally obtained an agreement for the insurers to pay loss of profits for the full 12-month indemnity period.