A plaintiff brought a suit against the defendant insurance company to enforce their contractual rights to their insurance coverage. After the plaintiff’s liquor store burned down, the defendant refused to pay the claim. It reasoned that the coverage was excluded by the plaintiffs’ failure to maintain an automatic fire alarm. The two parties filed cross-motions for summary judgment.
The owner of the plaintiff company consulted with an insurance agent regarding this business. They met several times and decided on the insurance plan offered through the defendant. The agent asked the owner if he had an alarm. The owner said that he did and the agent asked no further questions about alarms. A contract containing a protective safeguard endorsement (PSE) was signed and mailed to the plaintiff. The owner acknowledged that he read the PSE, but stated that he did not understand it.