Fire Insurance for Businesses
A recent Court of Appeal decision reinforces the importance for businesses of having insurance cover for losses occasioned by fire on their premises. The decision clarified that, although damage caused by fire emanating from an adjoining property could fall within the Rylands v Fletcher rule relating to non-natural use of land, such a case was likely to be "very rare".
Therefore it will be difficult to bring a successful claim for fire damage without proof of negligence.
In Stannard (t/a Wyvern Tyres) v Gore [2012] EWCA Civ 1248, the Court of Appeal considered whether strict liability under Rylands v Fletcher applies to damage caused by fire.
A landowner operated a business supplying and fitting tyres from a trading estate. About 3000 tyres were stored in and outside the building. The neighbour owned premises located behind the landowner's premises. A fire broke out on the landowner's premises and, fed by the eventual ignition of the large stack of tyres on his land, spread to the neighbour's premises. Both premises were completely destroyed by the fire. The landowner was not at fault for the cause of the fire, which lay in the wiring or electrical appliances in his premises.
Our Commercial Property team are here to offer any help and advice that you need in regard to protecting your premises and business. For more information call Malcolm Glynn on 0800 310 2000.