When Insurer Delays Cost More Than the Damage: How CEC Helped Recover £120K in Lost Profit

When vital equipment breaks down, the financial damage often goes far beyond repair costs. Yet, too often insurers focus only on the visible loss, ignoring the wider business interruption that follows. For brokers, this creates a critical pain point: clients left under-compensated, frustrated, and questioning the value of their insurance. 

At CEC, we help brokers protect their client relationships by stepping in when claims stall or fall short. Our expertise in complex loss and claims advocacy ensures fair settlements, even in the face of insurer resistance. 

Real-Life Impact: A Case Study 

A client’s business came to a grinding halt when an essential machine was accidentally damaged. The equipment was central to operations, and without it, they simply couldn’t trade effectively. But rather than accept the accidental damage, the insurer delayed, arguing the equipment was repairable and denying the need for immediate replacement. 

What followed was months of inactivity, as the insurer eventually appointed engineers to assess the machine. All the while, the business was losing revenue, customer momentum, and operational stability. 

After we became involved the insurer accepted the claim and paid £40,000 for the replacement equipment, but the real damage had already been done. The business had suffered significant loss of profit, not just during the downtime, but also in the slow rebuild of sales afterwards. 

CEC's Intervention: Pushing Beyond the Equipment Cost 

We immediately challenged the insurer’s narrow interpretation of the claim and their refusal to cover business interruption losses. By applying pressure, we secured the appointment of a specialist BI loss adjuster and built a compelling case around the ongoing financial impact, including a complex loss of profit calculation due to subcontracting costs incurred while the machine was out of commission. 

The result? The claim was revised and a full eight months of lost profit were recognised, leading to a £120,000 settlement, triple the amount initially offered. 

The Broker’s Dilemma and How CEC Solves It 

For brokers, situations like this pose a major reputational risk. A valid claim that’s underpaid or delayed can undermine client trust and jeopardise future renewals. But with CEC as your claims support partner, you can reassure clients with confidence. 

Why Work with CEC? 

• We dig deeper, uncovering root causes, long-tail financial impacts, and missed policy opportunities to strengthen your client’s claim. 

• We advocate relentlessly, working with insurers and loss adjusters to push for fair and timely settlements. 

• We protect broker relationships, helping you deliver on promises and build long-term client loyalty through successful outcomes. 

• We understand business interruption, recognising that recovery isn’t instant and losses extend well beyond the initial event. 

If you’re an insurance broker dealing with a difficult claim or a client struggling with an insurer’s delay, contact CEC today. 

Let us help you secure the result your client deserves.