Noncompliance with Policy Conditions Means No Coverage
A commercial property policyholder had not complied with all of the policy conditions before the property was damaged in a fire.
January 22, 2024 at 05:24 AM
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The Court of Appeals of Michigan affirmed a judgment in favor of an insurer that denied a commercial property claim based on the absence of an automatic extinguishing system (AES) on the insured property. The case is 23771 Blackstone, LLC v. Conifer Ins. Co., 2023 Mich. App. LEXIS 8292 (Mich. Ct. App. 2023). Please note that this opinion is unpublished and therefore has limited precedential value.
A fire damaged a building owned by 23771 Blackstone, LLC (Blackstone) and insured through a commercial property policy with Conifer. The original policy had been purchased several years before the fire and was renewed annually. A “Protective Safeguards Endorsement” (PSE) was attached to the policy that required Blackstone to maintain a specific type of AES in the building as a condition of coverage. There was no AES installed in the building at the time of the fire.
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