When a fire loss occurred the sprinkler system did not, Ask an Expert

Management Studies

Q. Breach of Warranty: General Chicken Case

The General Chicken restaurant purchased business interruption insurance using Justin Case Company as insurance brokers. The brokers placed the business, as requested, with a property insurance company. The policy, when issued, contained an automatic sprinkler warranty requiring the insured to use due diligence in maintaining the sprinklers in working condition. When a fire loss occurred, the sprinkler system did not operate and the restaurant was a total loss. In the trial, it came out which the brokers apparently knew the sprinkler system had been shut off.

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9348112

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