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A creative solution to a very big problem

Carlisle and the surrounding areas were devastated by Storm Desmond, with floods damaging individual households and commercial enterprises. When events like this happen, we always do our best to get out to see our customers as soon as possible.

One customer was a cycling warehouse. The risk address had been inundated with water around one metre in height, resulting in significant damage to the building and stock. The day after the flooding, the warehouse was only accessible by boat. We visited the site and commissioned a report within 10 days, adding an £870,000 reserve, including £350,000 for damaged stock.

In the coming months, we cash settled the buildings work. This enabled the customer to go ahead outside the normal local supply routes that were all inundated with work. We found an innovative solution to settling the stock claim. By selling the stock back to the customer, we reduced the loss to half of the initial reserve. This also enabled the customer to sell the stock through their website, mitigating the business interruption loss.

The claim was settled within six months for under half the original reserve. This is not only a remarkable saving, made possible by providing a creative solution, but also a very quick settlement considering the scale of the damage.