In July 2012, a fire broke out in the basement of one of our client’s hotel. At this time, extensive renovation works were being carried out at the epicentre of the fire.
Our client had arranged an Industrial All Risk Policy through Acclaim, covering for material damage and business interruption losses. Our claims team swung into action immediately. Aside from holding the building contractor responsible and liable for the damage, we liaised with relevant parties such as insurers, forensic experts and quantity surveyors throughout the arduous five-year settlement process.
With our intervention, we managed to obtain an interim payment of S$1 million even as quantifying of the loss continued.
While the material damage claim needed further negotiation from the insurer’s initial offer, the loss of revenue claim was even more contentious. Working closely with our client, we successfully renegotiated with both the insurer and their appointed expert specialists, on technical grounds, to revise their original offer. The material damage and loss of revenue claims were increased substantially from S$4.7 million to S$6.44 million. We felt this outcome was both equitable, and well-deserved by our client.