The Incident

Date: Sunday, 26 April 2009

Incident Type: Fire

Scope of damage: Over 60 fire fighters in attendance

The Consequences

Stock: Completely destroyed in the warehouse with significant damage in the retail areas

Fixtures & Fittings: Considerable damage or rendered unusable

Buildings: Significant damage

Business Interruption: Potential for considerable trading disruption

The Team

Paul Lawrence – Partner, Harris Balcombe, specialising in material damage with extensive knowledge of adjusting

Stewart Dymant – Partner, Harris Balcombe, Chartered Accountant specialising in business interruption

James Tuhey – Harris Balcombe, Qualified Building Surveyor

The Outcome – Claim Fully Settled in October 2010

Plan negotiated and agreed with insurers for continued trading during claim including a substantial payment on account.

Business interruption claim quantified quickly and successfully negotiated with forensic accountants appointed by insurers.

Stock, fixtures and fittings replaced.

Warehouse back in operation.

Building work completed.

Normal trading resumed.

Team Work In Action

By the time the fire had reached its height we had been appointed to prepare and negotiate the settlement of the claim with Ruxley Manor Garden Centre’s insurers. Before the fire was out we had assembled a team with all the required disciplines.

The first task was to help the client mitigate their losses and continue trading throughout the claim. Jointly analysing the options was critical and within the first few weeks we had negotiated a substantial payment on account from the insurer. Because the incident occurred in the run-up to Christmas a claim was also submitted under the increased costs of working section of the policy. An alternative to the usual Christmas Grotto attraction as well as other items, which featured in the increased costs of working claim for temporary premises, accelerated costs as well as premium time incurred were put in place.

Temporary measures were put in place, including emergency safety works to permit safe usage of the remaining sales areas and to reduce the appearance of the damage to the public. A temporary building was erected on site to house replacement stock and stock due to be dispatched from the shop.

These measures enabled Ruxley to open for business and help mitigate their losses.

In parallel we prepared claims for the material damage and, because the building was sited within a green belt, advised Ruxley on the complex planning issues prior to demolition. Rebuilding work was negotiated and project managed by our team.

Our negotiations with the appointed loss adjusters ensured interim payments were made so that Ruxley could finance their purchases and the rebuilding of their business. This action helped them to continue trading and maintain their reputation in the local area.

Quick action by the assembled claims team meant that Ruxley was able to concentrate on its business and not its claim. The result was minimal disruption to trading and the retained goodwill of their customers.