Wedding florist: marquee collapse and uninsured gaps

Loss by loss:

• Guest's broken wrist: public liability. The section responds only if Petal & Stem is legally liable for the injury. If the marquee was erected and secured by the venue or its contractor, liability may not attach. The florist should notify the liability insurer and not admit fault.
• £8,000 of floral arrangements: the shop contents/stock section may respond through the 'contents temporarily removed' extension. The limit is £5,000 and property in the open is excluded. The arrangements were inside the marquee, so the exclusion is arguable, but the maximum available is £5,000, leaving £3,000 uninsured. If the arrangements are treated as stock in transit, the goods in transit section may apply instead, but the limit and exclusions must be checked.
• £6,000 stock stolen from the trailer: goods in transit excludes theft from an unattended vehicle overnight, and the trailer was unlocked. The claim is likely excluded. The motor policy covers the van, not stock in a trailer.
• £4,000 lost contract and £2,000 deposit refund: not covered. Business interruption follows property damage at the shop and there was none; there is no event cancellation cover. A refund of a deposit is a contractual liability, not property damage.
• Venue's £15,000 marquee claim: public liability may respond if the florist was negligent, but the policy may exclude damage to property in the insured's care, custody or control, and contractual liability assumed under the venue's terms. The insurer will investigate who erected and secured the marquee.

Notify the public liability insurer immediately, in writing, and pass on the venue's letter and the guest's details. Do not admit liability, make an offer, or agree to pay for the marquee; the insurer has the right to handle the defence. Preserve evidence: the venue contract, the marquee company's erection method statement, weather reports, staff statements, photographs, and the florist's method statement for installing the arches. The key factual question is who was responsible for securing the marquee. If Petal & Stem's staff merely installed flowers and the venue's contractor erected the structure, the florist has a strong argument that it had no control over the marquee. If the florist's staff did secure it, the public liability insurer will assess negligence and any care, custody and control exclusion. The guest's injury claim should be handled by the same insurer. The broker should check whether the venue contract contains an indemnity or insurance obligation that the florist has breached; if so, notify the insurer because contractual liability may be excluded. Keep the customer informed and avoid correspondence that could be treated as an admission.

At renewal the broker should address the gaps revealed by the claim:

• Increase the contents temporarily removed limit above £5,000 and ask the insurer to delete or modify the 'property in the open' exclusion for installation work at events.
• Extend goods in transit to include theft from unattended vehicles, with a locked secure compound condition, or arrange a separate stock through transit policy.
• Add contractual liability cover if the florist signs venue contracts, or at least check the public liability wording for care, custody and control and contractual liability.
• Consider event cancellation or cancellation-of-contract cover if the florist takes deposits and faces loss of profit when a wedding is cancelled. Standard business interruption will not respond because there is no damage at the shop.
• Review the motor policy for business use and for carrying stock; the van policy does not cover the trailer contents.
• Consider professional indemnity if the florist gives design advice.

The broker should document the recommendations and the client's decisions, because the client may choose not to buy some covers.