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Business Interruption Insurance Claim Letter

A completed interruption claim linking a covered premises event to a quantified loss with evidence and mitigation.

Jurisdiction: England and Wales - completed fictional worked example

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# BUSINESS INTERRUPTION INSURANCE CLAIM LETTER

Date: 18 February 2031

Parties: Harbour Street Bakery Limited and Kingswell Underwriting plc

## 1. Purpose and parties

Harbour Street Bakery Limited submits claim BI-2031-17 under policy KU/BI/4402 after an insured escape of water at its Cardiff bakery on 2 February 2031. The burst pipe closed the production room and forced the bakery to stop wholesale production until 15 February.

## 2. Facts, scope and terms

The policy's 12-month indemnity period and gross-profit cover are relied upon. Harbour Street says the physical damage and closure caused the interruption; it does not claim losses from ordinary trading decline or unrelated staffing shortages. A surveyor confirmed the pipe, drying work and reopening date.

## 3. Process and responsibilities

The provisional calculation is £48,600: £34,000 lost contribution from cancelled wholesale orders, £9,600 continuing wages and rent, and £5,000 reasonable extra expense for temporary kitchen hire, less £0 saved costs currently identified. The calculation uses the policy's accounting basis and remains subject to reconciliation.

## 4. Evidence, records and safeguards

Enclosed are the policy schedule, incident report, invoices, bank statements, management accounts for 2028-30, sales ledger, cancelled orders, payroll, rent, temporary-kitchen agreement and mitigation log. Kingswell may inspect books and premises on reasonable notice; Harbour Street will preserve source data and distinguish estimates from invoices.

## 5. Review, escalation and outcome

The bakery mitigated by isolating water, notifying the insurer, moving some preparation to a licensed kitchen, offering refunds and prioritising profitable orders. It asks Kingswell to appoint a loss adjuster, confirm coverage and make an interim payment while the final calculation is audited.

## 6. Reservations and practical protections

Harbour Street reserves its position on continuing loss, increased cost of working and policy interpretation. It will cooperate with reasonable queries but does not admit any breach of a condition precedent. A complaint about delay or coverage will follow Kingswell's complaints process and, if eligible, the Financial Ombudsman route.

## 7. England and Wales law and completion

England and Wales law applies. The claim is sent to claims@kingswell.example and by post to the claims address as separate permitted methods on 18 February 2031. A director signs with authority and asks for acknowledgment within five working days.

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