Fire Loss & Resultant Business Interruption

A fire in a seven colour printing press caused extensive damage and resultant business interruption losses at the premises of a leading food packaging and printing company. The fire itself was limited to one area of the printing press, however, smoke and soot contamination, plus fire extinguishing efforts, caused wider damage and disruption. We were appointed to deal with the claim having acted on behalf of the client following a similar disaster several years before.

What We Did

We worked with the client and their Insurers representatives to evaluate the damage and develop a plan to establish the cost and timeframe required to repair and recommission the press, that being central to the business interruption risk and potential loss mitigation measures.

In the immediate short term, the client was able to subcontract certain orders but the longer-term outlook suggested this was not a viable option. The feedback from engineers and decontamination specialists indicated that any repair would be complex, lengthy and entail elements of uncertainty regarding parts availability. Similarly, the design and specification of the damaged press meant that replacement entailed a lead time of 6-9 months.

The client explored other options and found an ex-demonstration press available to buy as a temporary replacement and business interruption mitigation measure. The proposal and costs were supported by Insurers, this agreement successfully mitigating what might have otherwise been a greatly increased BI loss.  

The Outcome

The successful loss mitigation measures and support secured from Insurers expedited a full recovery for the company. The combined settlement of property damage and BI claims exceeded £1.5m.