Summary Judgment Professional Liability Claim
N/AOUTCOME: Summary Judgment
Obtained a summary judgment on behalf of an insurance agent and the insurance agency. The agent and agency helped a business procure property and liability insurance on its business. A fire loss occurr ... ed and the insured discovered that it did not have business interruption coverage. It sued the agent and the agency for negligence, breach of contract and estoppel in failing to procure business interruption coverage for the insured. We convinced the Court that an insurance agent only has a duty to seek coverage which has been requested by the insured. Although the agent reassured the insured the day after the fire that the insured had business interruption coverage, the fact that this statement was incorrect, there is no evidence of any reliance by the insured, any reliance would have been unreasonable and unforeseen and the insured would have know that the agent's statements were incorrect if it had looked at the policy in its possession.
