Angel Bakeries Claims Tens of Millions in Fire Damage Dispute with Insurer
A fire that broke out two months ago at Angel Bakeries' plant in Kfar HaHoresh caused damages estimated at tens of millions of shekels. However, the insurance company rejected the bakery's claim, alleging that certain fire safety requirements stipulated in the insurance policy were not met at the time of the fire, which allegedly affected the extent of the damage. The insurer offered to pay about 4.77 million shekels minus a 1 million shekel deductible, without admitting liability or coverage for the remaining claimed damages. Alternatively, the insurer proposed mediation to resolve the dispute.
Angel Bakeries revealed that while a full damage assessment is ongoing, preliminary evaluations indicate at least 15 million shekels in damage to the building and infrastructure, and at least 5 million euros in damage to two production lines. Additional damage to a third production line is still being assessed. The company also estimates expert service costs related to the incident at around half a million shekels. The insurance policy includes coverage for loss of income and ongoing expenses for an 18-month indemnity period during repairs. Angel is actively working to minimize damages but cannot yet estimate the full operational loss, which depends on the length of production recovery.
Given the insurer's offer of approximately 3.8 million shekels after the deductible, Angel rejected the position, stating the insurer's arguments do not justify denying coverage or reducing the insurance payout. The bakery demands the insurer reverse its stance and pay the full entitled compensation per the policy, threatening legal action if necessary.
Angel Bakeries, controlled by Yaron Angel (22.61%) and Shtibel (24.26%), is Israel's leading bread bakery with about 20% market share. It produces and distributes a wide range of bread products and operates three production sites, including the Kfar HaHoresh plant where the fire occurred. The company recently expanded production lines and expects further growth. In 2025, Angel's sales rose 7.7% to 598.3 million shekels, with gross profit increasing 18% to 229.2 million shekels, reflecting improved profitability after price adjustments and resumed supply to Shufersal supermarket chain.
