Companies ordered by High Court to pay more than £2.2m after East Sussex hotel fire

Deputy High Court Judge Simon Tinkler made the ruling last Thursday (July 27) after a hearing held at the court over four days in June.

Alan Boswell Insurance Brokers Limited and New India Assurance Company Limited (NIAC) were ordered to pay the money following the blaze at the George in Rye.

The hotel suffered a major fire in July 2019, leaving the venue closed until May last year following a two-year restoration project to repair the damage.

The judge said that the two companies were liable to pay the money towards the loss of stock and contents caused by the fire, as well as business interruption and ‘uninsured loss of rental income’.

Judge Tinkler's judgement read: “The claimants sought indemnification from NIAC for losses caused by the fire. Those included losses for damage to the building and losses caused by loss of business whilst the hotel was closed for reconstruction as well as for loss of stock and contents.”

An investigation into the cause of the fire at the hotel concluded it to be accidental and ‘electric in origin’.

Alex Clarke, co-owner of The George, said: “Insurance is a key element of any successful business, and where complex and technical issues exist, we are thankful the legal process was there to help conclude matters.

“We were pleased to celebrate the anniversary of our first year of re-opening with a drinks party for the local community in May. As the business continues to settle in since our re-launch, our levels of local employment have risen to over 50 employees, with a new generation of young British staff who are stepping forward to find a career in hospitality.

“Rye continues to be a high value destination for its influx of visitors from South East England and London, with the staycation boom of recent years putting the town firmly on the map to a wider catchment. There is a new energy to Rye’s restaurants and shops of late and there is much for the town to look forward to.”