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Achieving the best outcome

A high street florist, sharing property alongside other businesses contacted our claims consultant  to help when they had a devastating fire.

Facts

The fire left the building in need of significant repairs. A complex and extensive rebuild was required and all within a tightly controlled conservation area, meaning a lengthy reconstruction period. Our client was not the only business within the property, making the claims process even more complicated. 

After the extent of the damage was fully understood, it was revealed that the rebuild would take up to 24 months. This time was required to allow for the complexities of planning the reinstatement program, different ownership rights and the number of insurers involved. The client was covered for a maximum of 24 months of business interruption. A cover that aims to maintain a business’s income even if it is unable to trade for a period. It also helps a business get back to the same trading position it enjoyed prior to the incident. 

However, despite the fact that these costs were covered by the florist’s insurance policy, there was a significant risk that their customers could move on to competitor florists. The question on everyone’s lips was, would their customers return after two years when the repairs were complete? 

Action

As part of the claims settlement, the insurers agreed that the client could re-establish itself from a different location if they could find a site. 

Our  consultant identified that a nearby florist was for sale and in a great location. A business case was prepared and the “increased cost of working” section of the business interruption cover was used to buy the competitor florist and move the clients business to the new site to begin trading within a much reduced interruption period.

Result

As a result not only was the client back to business within seven months of the fire, but it had also essentially bought into a completely new customer base, importantly retaining old customers as well as winning new, which helped the recovery of the business.

This advice from the Hamilton Bond team ensured the business, restarted trading 17 months earlier than had been expected, strengthening the business as well as saving the insurers money by reducing the business interruption period. A successful outcome.

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