In the recent case of Ted Baker Plc and Another v AXA Insurance UK Plc
and Others [2012] EWHC 1406 (Comm), Eder J held that a
commercial combined insurance policy taken out by clothing
retailer, Ted Baker, covered theft by an employee and the
consequential or business interruption losses that flowed from the
theft regardless of the fact that Ted Baker had not taken out a
section of the policy relating to employee theft.
Background
As part of a stock-take, Ted Baker realised that it had suffered
a substantial loss of stock from its London warehouse. Following
investigations, one of Ted Baker's employees, along with two
accomplice van drivers, were discovered to have been stealing stock
from the warehouse. The employee was arrested and pleaded guilty to
conspiracy to steal over an 8 year period. Ted Baker brought a
claim against AXA for £1 million for the loss of stock and
£3 million for consequential loss or business
interruption.
