Updated 1/11/2024

On appeal from the district court, the Fifth Circuit held that a CGL policy's protective safeguard endorsement required the insured restaurant's fire suppression system to be in complete working order on the day of a fire in order to receive coverage. The case is Scottsdale Insurance Co. v. Logansport Gaming, L.L.C., 556 Fed. Appx. 356 (5th Cir. 2014). Note that this case is unpublished and therefore has limited precedential value.

Sabine River Restaurant (Logansport) purchased a CGL and property policy from Scottsdale. The attached Protective Safeguards endorsement required as a condition of insurance that the insured maintain the protective devices or services listed in the schedule (fire extinguishers and ansul system) in "complete working order" for the insurer to pay for loss or damage caused by or resulting from fire.