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.
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