Markel unit faces hefty claims over US nightclub fire.

(From Insurance Day)

Byline: Peta Miller

AN EXCESS and surplus lines unit of Markel is in line for multiple-million dollar lawsuits after it provided liability cover for the Rhode Island nightclub, which was gutted by a fire that killed 98 and injured nearly 200 earlier this year.

Tim Hughes, vice president of casualty claims at Essex Insurance. confirmed that it provided a commercial liability policy for "The Station" nightclub, which was covered for property damage by Burlington Insurance.

"It's still too early to say what the Essex will be liable for as we are still really early on in the investigation. The judge who's been assigned to it is having another hearing today with regard to access to the site," he told Insurance Day at the end of last week.

But lawyers who have started proceedings against a number of defendants including the night club owners, are seeking at least $1m for each victim who died in the horrific circumstances that developed on February 20.

Mr Hughes said there are question marks about the fireworks set off by the band, Great White, which the club's owners insist they were not forewarned of, and also over the quality of sound-insulating foam that subsequently caught fire.