Insurers could have to pay over £2m after as many as 1,400 cars were destroyed in the blaze, reports City AM

The fire that destroyed as many as 1,400 cars in a car park next to Liverpool’s Echo Arena could end up costing insurers £2m at the very least

Firefighters were called at 4:42pm on New Year’s Eve and did not contain the blaze until the next morning.

The fire spread quickly to the different storeys thanks to strong winds, which also made firefighters’ job extra difficult. At one point, 21 fire engines were attending the scene.

Every one of the 1,400 cars parked in the structure was destroyed. Horses, which were on the first floor when the fire broke out, were moved into the arena and firefighters rescued two dogs. The International Horse Show, which was scheduled to take place at the Arena, was cancelled.

No one was injured in the blaze.

One industry insider told City A.M. that, although it is still too early for official estimates, the cost of paying out for vehicles and possessions alone would be “millions - more than £2m,” with the final figure possibly ending up being “significantly more”.

A spokeswoman for the Association of British Insurers (ABI) said: “Insurers’ emergency claim lines operate 365 days a year so anyone who has been affected by this fire in Liverpool should pick up the phone to their insurer. Insurance is there to cover the costs of just this type of incident, and in 2016 motor insurers paid out more than £33m every single day.”

A spokeswoman for the British Insurance Brokers’ Association (BIBA) agreed it would be a “significant” claim, but was unable to provide an estimate.