Romanian insurer to pay EUR 5 mln for burned down furniture factory

Garanta, the local subsidiary of a Greek insurance group, will need to pay damages of at least EUR 5 million to the furniture factory Prestige Mob in Balotesti that burned down at the end of June, reports local Profit.ro. It will be one of the biggest damages ever paid in Romania. The insurance policy was a simple one, which didn’t include insurance against third party damage or against the loss of profit generated by the discontinuation of business. The fire didn’t affect only Prestige Mob, but also another warehouse in the area, as well as houses. In 2010, Generali paid damages of about EUR 5 million for over 2,000 units that burned in the Dragonul Rosu complex in Bucharest. However, the largest damage was the one paid by AIG for the Millennium Center office building in the Armeneasca area, namely about EUR 40 million. Most of it came from the calculated profit loss. editor@romania-insider.com