Major explosion - £1,8m business interruption claim



Electronics Group


"Morgan Clark's business interruption specialists guided the senior management through all the possible options for re-instating the business."

Electronics Group

In the aftermath of the disaster, the group turned to Morgan Clark’s team of experienced commercial loss assessors to advise them on how to re-instate the business quickly and in the most cost-effective way within the constraints of their insurance policy.

The claim

Morgan Clark immediately worked with the group to devise a strategy to get the business up and running again quickly. In particular, Morgan Clark’s specialist business interruption consultants guided them through the options for re-instating the business.

Morgan Clark explored different and imaginative ways to re-structure operations temporarily so that they could resume trading. In particular, they devised a ‘mix and match approach’ which would facilitate a more speedy resumption of trade. Morgan Clark’s specialists also worked with the group’s management to calculate a realistic claim for loss of profits. Prior to the disaster, the group had gone through a rationalisation and restructuring programme which had caused a temporary fall in turnover. Morgan Clark argued that this would have led to a subsequent upward trend.

The results

With the help of Morgan Clark, £1.8m was successfully claimed under the terms of its business interruption insurance, covering:

  • The cost of relocating part of the UK operation into the group’s former premises; the rest elsewhere; and the French distribution operation to a French logistics company.
  • Sufficient emergency funding to maintain cash flow and enable the group to continue trading during the indemnity period.
  • A favourable loss-of-profits settlement: Morgan Clark successfully argued that turnover would have risen despite recent downward trends.

A substantial lump sum settlement after nine months for the balance of the one-year indemnity period, enabling a speedy return to full trading.

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