Gallagher Business Assist- Major Fire Claim Case Study

By Gallagher
schedule5th Jun 23

This is how our additional service, Gallagher Business Assist (GBA) could help your business.


Our Client: A Food Manufacturer with Factories located in 4 separate geographical locations.


Our long-standing client suffered a serious fire at one of their production sites based in Essex. The factory concerned produced sausage products for the retail food sector. Their customer base included a major supermarket chain purchasing over £15m each year.


About 80% of the site was destroyed by an electrical fire. Our client’s immediate concern was that their inability to supply product to meet their customers needs would force those customers to seek alternative suppliers. Although the policy provided business Interruption cover for 24 months, our client was very concerned that some customers (particularly the major ones) may never return, potentially damaging their business on a permanent basis.


As the client had other production sites in the Midlands and in the East, it was hoped that they could simply shift production to one or both of those factories. However, there were several problems to overcome:

  1. The production processes were completely different, the other sites were involved in bacon slicing and gammon production, not sausage.
  2. The employees at the other locations didn’t possess the necessary skills.
  3. The bespoke Machinery had all been destroyed in the fire.
  4. Only one of the factories had any spare capacity to take on the work. It was located about 75 miles from the site where the fire occurred.


So, what was the solution? Working closely with our servicing team in Birmingham, our GBA colleagues negotiated with insurers for the machinery to be replaced at one of the alternative sites and insurers also agreed to pay the additional daily cost to transport the workers from the Fire damaged location to the other factory.


Our GBA team also obtained agreement from insurers to meet the significant costs of various sales promotions in order to ensure that the major customers remained loyal whilst all of the temporary logistical issues could be resolved.


Despite everyone’s best efforts, the business interruption and additional increased costs of working were mounting up rapidly on a monthly basis. We were able to secure Interim payments in order to provide much needed cashflow for our clients and to allow them to place the orders for the replacement machinery. Production was resumed but on a reduced basis and significant additional costs were incurred to make this possible.


After 14 months a final ‘cash’ settlement was agreed with insurers for a total sum of £19m (less interim payments). Insurers were persuaded that this would allow our clients to get on with their lives without the constant need to furnish more spreadsheets and explanations, whilst also allowing insurers to close their books on this major loss which could have rumbled on for another 12 months, potentially costing them significantly more.


Learning outcomes:

  1. Nobody expects a major loss but it is imperative to be prepared for one.
  2. Our clients expect us to be able to represent them to the same standard as insurers are represented by their Loss Adjusters. Gallagher Business Assist is our best way to ensure that we can meet that expectation.
  3. The cost of GBA is of little consequence when measured against the benefits of having a fully trained professional loss adjuster working alongside you who is able to do all of the ‘heavy lifting’ on the claim.
  4. Our clients know that we and our GBA colleagues work for the same company and that we have their interests as our mutual focus.
  5. A happy client is a great endorsement to the Gallagher promise that we will stand by them when they need us most.
  6. GBA have representatives all over the country, so no matter where the loss occurs we can quickly have someone on hand to deal with it under the Gallagher banner.


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