Miles Smith Insurance

Environcom, one of the UK's leading Waste Recycling companies for Electrical goods has lost a £6million claim against insurance company Miles Smith following a fire at its recycling site in Grantham.

Environcom brought the claim against Insurance brokers Miles Smith following insurance provider Woodbreck rejected their insurance claim for the fire on non disclosure grounds. Environcom claimed it was the brokers fault for not disclosing all the relevant details.

The judge Mr Justice David Steel ruled in his judgement that Miles Smith had breached its duty in not explaining Environcom’s obligation of disclosure. But even if it had carried out this duty, Environcom still would not have disclosed the use of plasma guns.

Judge Mr David Steel went on to say “I regard the documents relied upon by Miles Smith as satisfying their duty of explanation of the obligation of disclosure to be seriously inadequate for that purpose,” but that,
“Environcom…did not regard the use of plasma cutters as intrinsically hazardous or even as enhancing the risk of claim on the policy. Environcom would still not have recognised their use as material.”

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