Business interruption

Business interruption cover is triggered where the assured has suffered material damage to the insured property during the currency of the policy. In Loyaltrend Ltd v Creechurch Dedicated Ltd [2010] EWHC 425 (Comm) the assured was required to give immediate notification of material damage, and the court had to consider when such damage had occurred and whether immediate notice of it had been given.

Loyaltrend: the facts

The assured owned a number of shops, trading under the name Question Air, which retailed fashion clothes. The relevant shop was located in Notting Hill, London. The premises were leased in November 2001 by R, a director of the assured, who allowed the assured use of them. From the outset there was a problem with a leak in the roof, although that was repaired.