Second arson attack at factory – full settlement despite initial suspicions

Location South Wales

Customer Mr Diamond

Baglan Pallets rented premises on an industrial estate where there were repeated incidences of crime. The business had already suffered an arson attack but fortunately stock reports were available to substantiate the insurance claim. The owner, Mr Diamond, decided to deal with the insurer direct.

Ten months later, and before the first claim was settled, an arsonist struck again. Again, Mr Diamond entered into negotiations with the insurer, who was now represented by a new loss adjuster. According to Mr Diamond, he “took a very dim view of everything. It was like talking to a brick wall. He decided we had set fire to the premises ourselves and dealt with it in a very protracted way.”

The claim

Mr Diamond continued to pursue the claim himself but, as the weeks went on, his brokers suggested that he talk to loss assessors Morgan Clark.

This changed things considerably: “Someone from Morgan Clark came to see me the next day. The real difference was that they knew the rules of the game. They took over everything, which allowed us to get on with managing the recovery of the business. We heard from Morgan Clark on almost a daily basis and, if we ever needed to speak to them, our call was always returned within an hour.”

The results

Within seven weeks of this second fire, a full settlement was received. This rapid receipt of money was critical to securing the future of the business. But that was not the only difference made to the claim by Morgan Clark: according to Mr Diamond, “I estimate we would have been about £50k down if we had not used Morgan Clark.”

A major contributor to the size of the settlement was the claim for business interruption (loss of profits and increased cost of working), a highly-specialised area which needs expert handling.

More Case Studies

Cambridge

Fire damage in thatched cottage

"Mr and Mrs Hampshire suffered a fire at their thatched cottage, which started in the middle of the night when the family were asleep. The accidental fire was caused by a lighter being ignited, which resulted in blankets and pillows catching fire and ..."

Read more

Cumbria

Flooded bakery in Kendal: £100,000 insurance claim for machinery, st...

"Ginger Bakers is a very successful specialist cake producer based in Kendal, Cumbria, supplying commercial outlets across the country. When Storm Desmond wreaked havoc across the north of England in December 2015, the bakery’s leased premises were ..."

Read more

Cumbria

Flooding at kitchen worktop manufacturer: £1.2 million claim

"Stoneworld is a very successful manufacturer of quartz and granite kitchen worktops, importing expensive materials from across the world and using sophisticated precision cutting machinery. Based in Kendal, Cumbria, it distributes its high-end produc..."

Read more

Carlisle

Using Morgan Clark a second time for flood insurance claim

"When the river Eden flooded in Carlisle in 2005, water poured through David Allen’s substantial five-bedroomed semi-detached home. There was extensive damage throughout the downstairs which was likely to result in an insurance claim of around £100..."

Read more

Doncaster

Flooding – £630,000 business interruption claim

"In 2007, the town of Doncaster was hit by two floods in very quick succession. A large trading estate was very badly affected, including a successful steel processing and stockholding company. Three of its industrial units on the estate were contamin..."

Read more

South Wales

Residential college fire – £1.5m buildings and contents claim

"When an electrical fault caused a major fire at the UWC Atlantic College in South Wales, one of the school’s boarding houses was almost completely destroyed. The College’s immediate priority was to re-house the 52 students who lived there, so it ..."

Read more