Why hire an independent risk consultant?
- Bragan Jackson
- Mar 22, 2023
- 1 min read
Updated: Mar 23, 2023
Reason #2
Compliance with policy terms and conditions are important.
A fire broke out in South Bend, Indiana at Fun F/X, a costume and theatrical supply store. Fortunately, no one was injured in the blaze.
Later, it was discovered that the sprinkler system designed to protect the building has been disabled. Due to a coverage warranty included in the policy, the insurance company denied the entire fire claim.
In litigation, it was discovered that the building owner knew of the impairment but failed to comply with terms of the policy by notifying the insurer that the system was not functioning. They also failed to follow-up with the fire inspector and South Bend Water Works to have the issued remedied. As it turns out, the sprinkler system was capped when a neighboring building was demolished.
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