Claims against an insurance agent / broker can be actionable in negligence. Such a claim can arise with omitted insurance. “The party seeking to establish that improperly omitted insurance coverage was available must only show that ‘the requested coverage was generally available in the insurance industry when appellee obtained coverage for appellant.’” Leavitt Recreation & Hospitality Ins., Inc. v. Florida Caverns R.V. Resort, LLC, 50 Fla. L. Weekly D1641a (Fla. 1st DCA 2025) (citation omitted).
In a recent case, a company purchased an RV park. The company contacted an insurance brokerage firm to secure commercial property insurance. The company utilized the brokerage firm for another RV park and obtained a policy that covered power stations (or hook-up towers which are important to the operation of RV parks). The company provided information to the agent with a site map that included the hook-ups. The commercial insurance policy procured by the broker did NOT cover power stations. Thus, when a hurricane hit, significant damage was not covered to the power stations, and the insurer denied coverage. The cost to replace or fix power stations was over $1 Million.
The company sued the insurance broker for the damages sustained to the power stations. The company “alleged it had requested comprehensive coverage that would have encompassed the power stations, and that it was customary in the industry to include such coverage because of the inherent necessity of the power stations to operating an RV park. The complaint further alleged that, if the policy excluded power-station coverage, [the insurance brokerage firm], as broker had negligently failed to include that coverage, and that [the company] would have received insurance proceed covering the damage to the power stations but for [the broker’s] failures.” Leavitt Recreation & Hospitality Ins., Inc., supra.
The company’s owner testified in deposition that “he requested whatever insurance coverage would be adequate to protect against damage and loss to the business premises” and denied he would have rejected additional coverage simply due to a higher premium. The owner testified that he was not told coverage for the power stations was excluded. Leavitt Recreation & Hospitality Ins., Inc., supra
The insurance agent testified in deposition that the brokerage firm specializes in RV parks and could and did offer coverage for power stations. He testified the company elected not to obtain the coverage with power stations, although the company’s owner disagreed with this. A disputed fact.
The brokerage firm moved for summary judgment arguing that the company was required prior to trial to produce an actual insurance policy issued before the hurricane hit that covered the power station damage to prove such coverage was even available. While the trial court agreed, the appellate court vehemently disagreed. The appellate court noted the broker’s agent testified the disputed coverage was available at the time, thus, the brokerage firm would be hard-pressed to argue such coverage was not available.
We find no authority that would have required [the company] to produce, at the summary judgment stage, an executed, pre-[hurricane] policy providing power-station coverage and establishing a base for calculation of damages. The deposition testimony before the court established that the coverage was available, that both [the company’s owner and the broker’s] agent knew it was available, that [the owner] claimed he wanted it, and that the agent claimed [the owner] said he did not want it. The parties’ contract — the policy — does not on its face include the coverage. Producing an actual policy covering power stations was unnecessary. Further, even an agent’s failure to tell [the owner] the coverage was missing is actionable, and no policy could be required to prove that negative.
Leavitt Recreation & Hospitality Ins., Inc., supra.
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