Property insurance: measure of indemnity

In Sartex Quilts & Textiles Ltd v Endurance Corporate Capital Ltd [2019] EWHC 1103 (Comm), a decision of David Railton QC, the most important question was whether an assured entitled to the reinstatement of its buildings and machinery under the policy once reinstatement took place was nevertheless entitled to indemnity on a reinstatement basis even if no work had been carried out. The court, applying established principles, held that the test for measuring the assured’s loss focused on the assured’s intentions immediately before the insured event, and that post-loss intentions were largely irrelevant.

Sartex : the facts