Zurich Loses Appeal Over Recycling Plant Fire Claim

Law360, London (April 23, 2021, 4:12 PM BST) -- Zurich lost its bid on Friday to avoid covering losses for older equipment ruined by a blaze at a recycling plant despite escaping the bulk of the £4.3 million ($6 million) lawsuit over new machinery destroyed in the fire.

The Court of Appeal rejected the insurer's argument that Niramax Group Ltd.'s failure to disclose some fire safety issues resulted in Zurich underwriting a 2014 policy renewal for the older, mobile plant. In March 2020, a lower court ruled that Zurich was not on the hook for the new plant, but still owed £534,632 in losses related to the older equipment.

Zurich had argued...

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