Aon Can't Shake Northrop's Katrina Coverage Suit

Law360, Los Angeles (October 6, 2011, 9:21 PM EDT) -- A California judge on Thursday refused to dismiss Northrop Grumman Corp.’s claims that its insurance broker Aon Risk Insurance Services West Inc. breached a contract and committed professional negligence, costing Northrop millions when insurers refused to cover flood damage from Hurricane Katrina.

Los Angeles Superior Court Judge Michael C. Solner’s ruling means Aon will have to answer allegations that the insurance broker breached its obligation to procure comprehensive disaster insurance for the defense contractor.

Northrop filed the lawsuit in January and amended it in June, saying...
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