An insurance brokerage firm is responsible for the wrongful conduct of its employees, agents and independent contractors as long as they give the public the appearance that the individual is working as an agent of the brokerage.

In Hawaii, Certain Underwriters at Lloyd's London Subscribing to Policy No. LL001HI0300520 v. Vreeken, Slip Copy, 2014 WL 2949463 (Hawaii App.), a case arose around two homeowners insurance policies—the “original policy” and the “second policy”—issued by Certain Underwriters at Lloyds through its broker Seacoast Brokers of Hawaii LLC , and placed by Defendant Harry Wengler, an insurance agent associated with Defendant Bishop Insurance Agency, Inc. on behalf of Plaintiffs Steven and Pamela Vreeken.

The policies purported to insure the Vreekens' home in Hauula, Hawaii, from March 3, 2004 through March 3, 2005, and from May 9, 2005 through May 8, 2006, respectively. The house, elevated approximately nine feet above the ground since July 2004, collapsed on May 23, 2005 during an attempted structural renovation. Because the original policy had lapsed on March 3, 2005, and because the application used to procure the second policy stated that there was no renovation work underway on the property, and thus contained a material misrepresentation which voided the second policy, the Vreekens were left without insurance on the house.