Million pound claims expected from market fire
Damage from the Camden market fire will cost insurers millions, the ABI said this week.
And further claims could arise from local traders whose premises were undamaged, but could suffer financial loss.
The blaze spread from Camden canal market, London, on Saturday evening, consuming a large number of market stalls and some nearby buildings. To date there have been no reported injuries.
The police cordoned off many roads in the surrounding area as fire investigators began examining the scene, causing disruption to traders who have re-opened their businesses. But many of these businesses may not hold ‘denial of access’ policies, said Angus Tucker, director of insurance claims solutions within Grant Thornton’s forensic and investigation services practice.
Physical damage and business interruption policies should cover owners of destroyed market stalls, he added.
An ABI spokesman said: “Given the extent of the damage and the significant number of closures the insurance claims are likely to run into millions.” He added that shops damaged by last year’s floods were paid around £100,000 each.
Tucker said: “As well as the market itself, the surrounding roads have been closed off, denying local business owners access to their work premises.
“While they have not been directly affected by the fire, they will only be able to make claims for trading losses if they too hold ‘denial of access’ policies.”
Camden Market Holdings owns Camden Lock Market, which was destroyed by the fire. A spokesman said the company was seeking to rebuild the site as quickly as possible so that stallholders could get back to work.