Four horticultural businesses in Norway sue Gjensidige over damages from extreme weather

Four horticultural businesses, having sustained damages amounting to several hundred million Norwegian kroner during extreme weather in January, are suing insurance company Gjensidige for compensation. The insurer previously denied the claim, asserting that damage caused by snow weight is not covered by their policy. The estimated total damages and loss of revenue stand at around 600 million kroner.

The dispute revolves around whether the destruction resulted from snow alone or from a combination of snow and wind. This case is significant for the entire horticultural industry as it could influence future insurance agreements and investment decisions.

The Norwegian Horticultural Association is assisting three businesses in Agder and one in Vestfold, which collectively experienced over 100 acres of production area destroyed in January’s extreme weather. One of the hardest-hit businesses, J. Kristiansen’s horticultural operation, was completely destroyed by heavy snowfall at the New Year.

The situation is dire, particularly for Ole Martin Hodnebrog from Grimstad, who lost multiple greenhouses and a 2,000 square meter store to the storm. He emphasized that if businesses cannot secure insurance against snow damage, banks may be reluctant to provide loans for rebuilding, stifling future investments in the sector.

The conflict also hinges on whether the collapse of structures was primarily due to wind or simply snow weight. While some argue that wind played a crucial role, Gjensidige insists that the damages are not covered under their insurance policy.

Morgan Andersson, General Secretary of the Norwegian Horticultural Association, hopes Gjensidige will reconsider, as the resolution of this case is vital not only for the immediate financial recovery of affected families but also for the future of the horticultural sector in Norway.