In Insurance Company v. Mowry, the Supreme Court of the United States was asked to decide whether an insurance company was liable for a fire loss that occurred on a property owned by the insured. The insured had taken out a policy with the insurance company, which provided coverage for losses caused by fire. The insured had failed to disclose to the insurance company that the property was being used for a business purpose, and the fire had occurred while the business was in operation. The Supreme Court held that the insurance company was not liable for the fire loss. The Court reasoned that the insured had failed to disclose the business use of the property, and that this failure constituted a material misrepresentation. The Court held that the insurance company was not obligated to pay the claim because the insured had failed to disclose the material facts. The Court also noted that the insurance company had not been aware of the business use of the property, and that the insured had not acted in good faith in failing to disclose the material facts.

In Insurance Company v. Mowry, the Supreme Court was tasked with determining whether a policy of insurance issued by an insurance company to cover losses from fire applied when the insured property was destroyed due to lightning. The majority opinion held that since lightning is considered a form of fire, and thus covered under the policy, the insurer must pay for any damages caused by it. Justice Field dissented from this decision on two grounds: firstly, he argued that there were no express terms in the contract which stated that lightning would be covered; secondly, he contended that even if such language had been included in the agreement between parties it would have been void as against public policy because contracts should not be allowed to indemnify people for their own negligence or misconduct. In conclusion, Justice Field believed that while insurers may choose to include coverage for certain risks like fires and floods they should not be required to do so if those risks are beyond their control or involve potential moral hazards.