Search
 

Case analysis: Do agents owe a duty to the general public?

Third party sues insurance agent in Ohio for negligent procurement, after the agent's policyholder causes an auto accident. What do the courts say?

By Barry Zalma, Esq., CFE | Updated on March 06, 2015

Insurance agents owe a duty to their customers to obtain the insurance and the coverage limits the customer requests. But when someone is hurt by the actions of the insured, can that person, who is not a party to the contract between the insured and the carrier, sue the agent because there wasn’t enough insurance coverage to pay for the damages incurred? That was the question in a recent Ohio case that considered the issue of third-party recovery.

A criminally negligent dump truck driver caused an auto accident in which Lisa Emahiser was killed and her son injured. As claims were pursued, it soon became apparent that the driver’s employer, the dump truck company, maintained inadequate commercial carrier insurance coverage under federal and state regulations. In Emahiser v. Complete Coverage Ins. LLP, the U.S. District Court for the Northern District of Ohio was asked to decide whether the estate of the deceased woman could sue the insurance agency that obtained the company’s insurance policy for failing to obtain the correct amount of coverage.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.