Hunton Insurance Recovery Blog

The owner of a fire-damaged warehouse in Florida is battling in the Fifth Circuit to revive a claim alleging that a broker and insurer negligently failed to procure adequate insurance for the warehouse—by arguing that the lower court should have applied a different state’s law to its summary judgment determination. The warehouse owner leased the warehouse to a Florida-based produce distributor, which in turn procured a $5 million insurance policy from Alterra American Insurance Co. A fire later caused $10 million worth of damage to the warehouse, toward which Alterra paid the $5 million policy limit.