Calif. Reinforces Broker Shield Against Policyholder Suits

Law360, New York (November 20, 2013, 8:12 PM EST) -- A California appeals court has held that insurance brokers do not have an implied duty to investigate and fulfill a client's coverage needs when placing policies, preserving the state's conservative stance on broker liability despite persistent efforts by unhappy policyholders to go after brokers' wallets.

The appeals court ruled that remodeling contractor San Diego Assemblers couldn't force its broker Work Comp for Less Insurance Services Inc. to pay for losses from an explosion and fire at a restaurant that hired Assemblers. The lawsuit was brought by...
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