Reed Smith Client Alerts

The recent decision in Contact (Print and Packaging) Limited v. Travelers Insurance Company Limited [2018] EWHC 83 (TCC), handed down on 23 January 2018, serves as a salutary reminder that an insured pursuing an indemnity in relation to business interruption losses should take all reasonable steps to preserve and organise as much evidence as possible to support its claim. In this instance, a lack of contemporaneous evidence ultimately resulted in the insured recovering less than 5 per cent of its claimed business interruption losses.

Authors: Mark Pring Catherine Johnson Robert Allan

The facts

Contact (Print and Packaging) Limited (Contact) was in the business of printing packaging for the food and pharmaceutical industries, using large industrial printing presses. In April 2013, one of the presses at Contact’s facility in Stockport suffered a sudden, “catastrophic” failure, the cause of which was not immediately apparent.

Contact subsequently sought to recover its losses under a Techsure policy (the Policy) underwritten by Travelers Insurance Company Limited (Travelers), which, among other combined covers, in principle insured both property damage and business interruption losses. In relation to the latter, Contact asserted that the failure of the press reduced the printing capacity of the business by 50 per cent.