Insurance brokers do not have a duty to inspect a business property to offer flood insurance, according to a ruling handed down this week by an appeals court in in Pennsylvania.
The case stems from a Millersburg business that obtained a commercial policy in 1994 through the Brown and Brown Insurance Co., Tampa, Fla., and suffered a flood five years later.
When the business, Saturn Surplus, was informed by its broker that there was no coverage for flood damage, it filed suit asserting the brokers breached their duty by failing to investigate their client's insurance needs.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
