The Honorable R. Stanton Wettick of the Allegheny County Court of Common Pleas recently dismissed a $13 million dollar professional malpractice case against an insurance broker. Plaintiffs were the owners of a condominium building in downtown Pittsburgh and claimed that the broker failed to provide them with “soft cost” coverage on their builder’s risk policy to cover economic losses incurred after a fire loss at a manufacturing facility. The facility manufactured panels that were to be installed on the condo building. Although Plaintiff did not own the panels, they claimed the soft cost endorsement on their builder’s risk policy should have provided coverage for business interruption after the fire caused a delay in the building. The Plaintiff initially sued its insurance company for its damages, but the company denied coverage stating that the soft cost endorsement did not provide coverage for losses that did not occur at the jobsite. Plaintiff then sued the broker for negligence. The Judge found that the Plaintiff’s expert did not establish a claim for professional negligence against the broker and dismissed the Complaint. Click here for the Judge's opinion and order on the case.
Summary Judgment Obtained for Insurance Broker in Professional Malpractice Case