March 16, 2006 |

Insurance Coverage

Our client, a reseller of computer hardware and software, suffered a series of burglaries (three in two months). The insurer failed to pay, claiming that the insured had failed to provide correct information about moving from one facility to another (resulting in an alleged $10,000 limit of coverage). We sued the insurer and the broker. The insurer had referred the claim to its Special Investigation Unit, but that unit had issued a no fraud report based on the police having apprehended a burglary ring which was responsible for these thefts and others. Unfortunately, the client’s records were in such disarray that they were unable to prove the amount of loss. Through good strategic decisions we were still able to obtain a favorable settlement.