Fire Loss & Resultant Business Interruption

A fire caused extensive damage to a multi occupancy leisure complex adjacent to a Premier League football stadium. One of its largest occupants was an indoor trampoline and play park business with 8 sites around the UK. We were instructed to deal with this claim on behalf of the policyholder via The ARAG Loss Assist Scheme.  The fire was believed to have been a malicious arson attack and originated within the client’s premises. Other affected neighbouring businesses included indoor football facilities, cinemas, sports retailers and associated food and beverage outlets.  

What We Did

The extensive damage effectively closed the entire facility on account of contamination and safety issues, however, the various interested businesses suffered varying extent of damage and therefore differing priorities in terms of remedial works and resuming trade. Also involved were the freeholders of various buildings forming the complex, all of whom were represented by their Insurers.

We attended regular all-party meetings on site in the early post fire period representing and prioritising our client’s interests in the process of remediating the damage. The nature of the client’s internal fit out, being mainly constructed in synthetic materials designed for human contact, was damaged beyond restoration. Replacement lead times are often a challenge in this sector, most indoor play centers built to a bespoke design reflecting the size and layout of the premises.  With no alternative premises option viable in this case, the loss mitigation strategy focused on remediating the building and procuring a replacement fit out on an accelerated premium cost basis.

Having secured Insurer support for the proposed reinstatement works and costs, the Insured was able to resume trading within 6 months of the fire.

The Outcome

Following completion of the property reinstatement and fit out, settlement of the claim and reimbursement of the clients’ costs was negotiated successfully. The acceleration costs involved formed part of the business interruption claim, having mitigated what might have been a long-term financial detriment to the company.

During the latter stages of the claim negotiations, the client entered into a potential sale negotiation with a leading competitor, creating an effective deadline for completion of settlement that we achieved to all parties’ satisfaction. This enabled the client to complete their sale successfully, providing a favourable, if unexpected outcome not envisaged at the time of the fire.