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Ceiling collapse tests the limits of insurance policy's liability

By: Series: Architects' Journal ; 219(20) 20 May 2004, 46(1)Publication details: 2004Subject(s): Summary: Discusses "Horbury Building Systems Ltd v Hampden Insurance NV" ([2004] EWCA Civ 418; [2004] 2 All ER (D) 124 (Apr)) where it was held that an insurer was not liable to indemnify an insured contractor in respect of loss of profit arising from the closure of an entire cinema complex. The ceiling had collapsed in a single auditorium, but the policy only covered liability for the physical consequences of the damage in the auditorium and the economic losses caused by that physical damage.

Discusses "Horbury Building Systems Ltd v Hampden Insurance NV" ([2004] EWCA Civ 418; [2004] 2 All ER (D) 124 (Apr)) where it was held that an insurer was not liable to indemnify an insured contractor in respect of loss of profit arising from the closure of an entire cinema complex. The ceiling had collapsed in a single auditorium, but the policy only covered liability for the physical consequences of the damage in the auditorium and the economic losses caused by that physical damage.