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Liability Risk and Insurance

Architects sued over insulation panel

Architect firm found liable for contributory negligence in factory fire, and owners awarded damages. The spreading of the fire was due to the negligence of the architects because of their specification of a combustible panel in the vegetable preparation room of the curry factory. The insurer was reported to be seeking £17mn plus £8mn in interest, but the firm of architects only has £3mn in professional indemnity cover through a Lloyd’s syndicate. The insurer, Norwich Union, said it was not looking to bankrupt the firm.

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