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Phillip purchased premises to be used for office furniture assembly. Phillip took out a fire insurance policy with AMM Insurance to indemnify him for any damage to his building and its contents caused by fire. The insurance proposal form contained a number of questions including questions on the business activities undertaken at the premises. Phillip completes the form comprehensively and the annual fire insurance policy takes effect. A few months later Phillip’s business changes his business and now it involves packaging fireworks. A short time later, the building and its contents are destroyed by fire. Insurance investigators discover that the fire resulted from firework detonators exploding which occurred due to incorrect storage by Phillip.

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