When a major fire tore through a Midlands-based recycling plant, not only were the building and plant severely damaged but the stock burned for several days.

The plant had a number of local authority black bag disposal contracts which had to be continued to prevent financial penalties.

Fortunately, the business had a Lorega Loss Recovery Insurance policy, and they were able to ensure that a Chartered Loss Adjusters was appointed to act on their behalf to get the claim sorted.

The priority was to ensure that the bags could be securely stored, and the processing outsourced to other plants. The cost of this was covered under the business interruption section of the underlying insurance cover.

Although this was successfully recovered from the insurance company, the value of the stock was initially rejected on the basis that ‘stock debris’ removal did not cover the increase cost of landfill disposal.

Thankfully, the Lorega Expert was able to argue that the stock would have been sorted into recycling and landfill disposal, if it had not been for the fire, and the additional cost of landfill was recovered.

The claim was therefore settled in full and the business was able to carry on trading which helped it to survive.

When the worst happens, you think you are covered for the cost of getting your business back up on its feet. As we found out, having a Lorega Expert on our side to manage your claim is absolutely essential.

Managing Director, Waste Recycling Plant, West Midlands