Our firm represented a large insurance brokerage firm that was sued in connection with the placement of a highly specialized contractor’s insurance program for a large-scale construction project. The contractor alleged that the broker negligently procured coverage that failed to respond to a significant project loss. At the same time, the contractor pursued claims against the insurance carrier, asserting bad faith refusal to pay under the policy.
From the outset, the matter involved complex insurance products, sophisticated commercial parties, and overlapping claims of professional negligence and insurance bad faith. The plaintiff sought to shift responsibility for a potentially uncovered or disputed loss onto the broker, despite the policy having been negotiated and issued in accordance with the contractor’s expressed requirements and industry standards.
Over the course of several years of litigation and discovery, we conducted an exhaustive analysis of the policy placement process, underwriting communications, and the contractor’s own risk decisions. Through targeted discovery and motion practice, we exposed significant legal and factual hurdles in the plaintiff’s theory of liability against the broker, including issues of causation, reliance, and the allocation of risk between sophisticated commercial entities.
As the case progressed, it became clear that the claims against the broker could not be sustained under applicable law. At the same time, the parallel coverage and bad faith issues involving the insurance carrier moved toward resolution. Ultimately, the matter was resolved to the satisfaction of all parties, with the insurance carrier funding a substantial portion of the claim and the claims against the broker being favorably concluded.
This result allowed our client to avoid the reputational and financial consequences of protracted professional liability litigation, while achieving a practical and efficient resolution of a complex, multi-party insurance dispute.
