Agent Without a Special Relationship Not Responsible to Explain to Insured Coverage Requested is not Available

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Insurance agents and brokers are required to obtain the insurance requested by the insured if that insurance is available in the marketplace.

In Beautyko, USA,  v. P&G 2020 NY Slip Op 33526(U), Index No. 653451/2018, Supreme Court Of The State Of New York (October 26, 2020) Plaintiffs Beautyko, USA, Inc., Linnoi, LLC, Beautyko, LLC, Shopflash, Inc. and Bennoti, Inc. (collectively, “Plaintiffs”) sued their former insurance brokers, Defendants P&G Brokerage, Inc. (“P&G”) and Benjamin Hirsch (collectively, “Defendants”), for negligence in failing to procure insurance coverage.

ZALMA OPINION

Insurance, by definition, only provides indemnity for a contingent or unknown events. Intentional torts, therefore, are uninsurable as are breaches of contract which can only be established by intentional conduct. In this case the Plaintiffs breached its contract with Amazon and lost a jury verdict establishing the breach. The Plaintiffs were unable to establish a special relationship with the broker.