Alarm bells rang when a fire occurred at a warehouse owned by a business that supplied advanced technological components. While the business did not appear to be in difficulty, arson was suspected.
The total material damage and business interruption claim was estimated at more than £1,000,000, including damaged stock totalling more than £350,000.
On the basis of the forensic fire analysis, detailed field work by our fraud investigator and financial analysis by our forensic accountant, the cumulative weight of evidence was enough for the insurer to deny liability on the basis of arson and insurance fraud.
A “high-level” review indicated the business was generally sound, however a fire expert concluded the blaze had been deliberate.
A detailed investigation including witness statements, fire analysis and forensic accounting uncovered both a motive (the desire by owners to change the business model) and strong evidence for arson.