“Draconian” operation of trade waste removal indemnity
Operators of restaurants, hotels and other businesses that offer hospitality to customers should take a careful look at their fire insurance policies with a view to excluding or modifying any warranty requiring the removal of trade waste. This warning is prompted by the decision of Tomlinson J in Bennet (t/a Soho Pizzeria) v AXA Insurance plc [2003] EWHC 86 (Comm); [2003] PLSCS 24, holding that the expression “trade waste” includes cigarette ends and other “individual detritus” which customers may leave on tables and elsewhere.
Mr Bennet’s disastrous loss of the benefit of his insurance policy in that case is a reminder that the giver of an unqualified warranty that A or B will or will not happen accepts the full risk of things turning out otherwise. For that reason, it was immaterial that Mr Bennet had apparently put in place a reasonably safe system of waste removal.
“Draconian” operation of trade waste removal indemnity
Operators of restaurants, hotels and other businesses that offer hospitality to customers should take a careful look at their fire insurance policies with a view to excluding or modifying any warranty requiring the removal of trade waste. This warning is prompted by the decision of Tomlinson J in Bennet (t/a Soho Pizzeria) v AXA Insurance plc [2003] EWHC 86 (Comm); [2003] PLSCS 24, holding that the expression “trade waste” includes cigarette ends and other “individual detritus” which customers may leave on tables and elsewhere.
Mr Bennet’s disastrous loss of the benefit of his insurance policy in that case is a reminder that the giver of an unqualified warranty that A or B will or will not happen accepts the full risk of things turning out otherwise. For that reason, it was immaterial that Mr Bennet had apparently put in place a reasonably safe system of waste removal.
