Insurance dispute - successful representation of policyholder

Nater Dallafior advised and represented a Swiss-domiciled company – being the policyholder – against its insurer in connection with the policyholder's claim for coverage based on a business interruption insurance policy.

The policyholder is active in the area of construction and, in particular, the wood construction sector. A fire destroyed essential parts of the policyholder's manufacturing site. Whilst the insurer provided coverage for the material damage, it denied coverage for business interruption. The dispute concerned the question of the length of the period of the insured interruption, the calculation of the damage, and the extent of the policyholder's duty of damage mitigation measures.

Benjamin Schumacher, one of Nater Dallafior's experts on insurance law, led the lengthy pre-trial negotiations with the insurer. Ultimately, the matter could be resolved by means of an amicable solution, in which the insurer agreed to cover the damage caused by the temporary interruption of the business. Since Swiss insurance law lacks substantive case law concerning business interruption policies, various questions at issue in this case were novel and posed a significant challenge when made subject of negotiations with the insurer.