No Insurance Payout For £700,000 Warehouse Fire

In a warning to all that the fine print of insurance policies is well worth reading, a furniture company that suffered losses in excess of 700,000 in an arson attack on its warehouse will go uncompensated after falling behind on payments to the firm

In a warning to all that the fine print of insurance policies is well worth reading, a furniture company that suffered losses in excess of 700,000 in an arson attack on its warehouse will go uncompensated after falling behind on payments to the firm that monitored its burglar alarm system.

The High Court had nothing but sympathy for the companys director, whose life had been shattered by the fire, and took no pleasure in ruling that insurers were entitled to avoid liability for the fire that destroyed stock worth almost 150,000 and cost the company 560,000 in lost revenue.

The commercial combined insurance policy had obliged the company to ensure that the warehouses burglar alarm was monitored by an external firm. However, the company was encountering financial difficulties at the time and had failed to pay the firms charges for more than six months before the blaze.

The alarm was in fact still monitored when the fire broke out but the Court found that the company had been reckless; as to the risk that the service might be cut off at any time. Although the company may have hoped and prayed that the firm would stay its hand, it had rather buried its head in the metaphorical sand as regards this issue.

The company had taken matters far too close to the wire in failing to pay the firms outstanding charges and had instead recklessly preferred to attempt to string matters out. In those circumstances, the Court found that the company was in breach of a condition precedent in the insurance policy.‹‹ABOUT SERENITY LAW

Serenity Law is a London-based commercial law firm like no other. We offer an innovative alternative to the existing conventional solutions. Instead of employing your own full-time, in-house lawyer or consulting a law practice, with Serenity Law you get legal advice when you like, as often as you like and for as long (or as short) as you like. Serenity provides top quality legal services at affordable prices. Serenity Law delivers commercial and dispute resolution legal services to London, UK and international clients. Practice areas are Corporate Law, Commercial Property, Real Estate and Property Litigation, Employment Law and Intellectual Property

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Original Source: No Insurance Payout For £700,000 Warehouse Fire

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