A limited liability company engaged in landscaping and snow removal operations pursued a claim against its insurance broker after discovering that it was not properly insured under the policies arranged for its affiliated entities. Although the company had routinely issued certificates of insurance in its own name, it was never actually listed as an insured party.
The issue came to light after an individual was injured in a slip-and-fall accident at a property the company serviced. When the property owner tendered defense of the lawsuit to the company’s purported liability carrier, the insurer denied coverage, citing the absence of the company from the policy. The company then brought an action against the insurance agency, alleging negligence in failing to secure coverage and in issuing invalid certificates of insurance.
With the assistance of a mediator, the dispute was ultimately resolved. The property owner’s insurer contributed the majority of the settlement funds, bringing the matter to a satisfactory conclusion without further litigation.