Insurance Claim – Coverage

By: WISCONSIN LAW JOURNAL STAFF//March 6, 2023//

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7^th Circuit Court of Appeals

Case Name: Frankenmuth Mutual Insurance Company v. Fun F/X II, Inc.

Case No.: 22-1933

Officials: Easterbrook, Hamilton, and Kirsch, Circuit Judges.

Focus: Insurance Claim – Coverage

Appellants Fun F/X II, Inc. and Cao Enterprises II, LLC (collectively “Fun F/X”) sought insurance coverage after a warehouse fire. The relevant insurance policy issued by appellee Frankenmuth Mutual Insurance Company provides that it does not cover losses if prior to the fire the policy holder knew of a suspension or impairment in an automatic sprinkler system yet failed to notify Frankenmuth of the issue. Cao had knowledge in 2017 that the system had no water yet never reported that impairment nor determined that the problem was solved Based on this policy exclusion, the district court granted summary judgment for Frankenmuth.

Affirmed.

Decided 02/28/23

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