Insurer Says Salt Co. Misrepresented Risks Before Fire

Law360, London (October 3, 2019, 2:07 PM BST) -- Insurer Covea has hit back at a salt producer suing to recoup £2.8 million ($3.5 million) following a fire at a plant, saying the manufacturer misrepresented itself as a successful business and acquired more insurance than it needed for machinery it did not own.

Covea Insurance PLC told a judge at the High Court in London that NGS Salt Supplies Ltd. cannot collect under an insurance policy covering fire damage because the manufacturer downplayed its risks when it took on the policy, thereby voiding it. 

NGS Salt had sought to insure £4 million in machinery and buildings but owned just equipment and...

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