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NY court dismisses claims against broker over alleged coverage gap
The Appellate Division said the brokerage procured exactly the coverage the policyholder originally requested and the client never returned with a specific coverage change request.
A New York appellate court affirmed summary judgment for Edward A. Kurmel Brokerage, Ltd., dismissing a policyholder’s negligence and breach of contract claims tied to an alleged insurance coverage gap.
The policyholder argued the broker should have kept his coverage current as his circumstances changed over the years, but the court found that obligation did not apply in the absence of a specific coverage request after the policy was issued.
The dispute dates to May 2020, when the policyholder and his brother sued the brokerage in Supreme Court, Kings County, over the broker’s alleged failure to ensure adequate coverage once his situation evolved.
In its ruling, the court noted New York law requires brokers to obtain the requested coverage within a reasonable time or inform clients if they cannot, and it relied on the brokerage’s argument that it procured exactly the coverage originally requested and was not asked for anything different.