Pacific Rim v. Aon: Insurance Broker Has No Duty to Inform Subcontractor of Developer’s Insurnace Company’s Insolvency

more+
less-

[author: Mark Hancock]

The California Court of Appeal recently handed down a significant published decision pertaining to the duty of an insurance broker who procures a policy for the the developer of a construction project.  The Fourth Appellate District, Division One, wrote:

"In this case we are presented with an issue of first impression in California: Does an insurance broker, after procuring a policy of insurance for a developer on a construction project, owe a duty to apprise a subcontractor that was later added as an insured under that policy of the insurance company’s subsequent insolvency?  We conclude that, absent the assumption of a contractual duty to do so, insurance brokers owe no such duty."

The decision is Pacific Rim Mechanical Contractors, Inc. v. Aon Risk Insurance Services West, Inc.,  203 Cal. App. 4th 1278.

 


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sedgwick LLP | Attorney Advertising

Written by:

more+
less-

Sedgwick LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×