Abetta Boiler & Welding Serv., Inc. v. American Intl. Specialty Lines Ins. Co

Abetta Boiler & Welding Serv., Inc. v. American Intl. Specialty Lines Ins. Co. (76 AD3d 412, 906 N.Y.S.2d 540 1st Dept 2010) stands for the well settled principle that a broker may be held liable for negligence in failing to forward claim information to the insurer -- i.e., that an insurance broker owes the insured a reasonable duty of care with regard to notifying the insurer of claims. In that case, the Appellate Division, First Department found that as a "matter of routine Abetta referred all questions regarding its insurance claims to Amerisc and Amerisc handled all Abetta's insurance needs, including referring its claims to insurers, established a special relationship between the two that imposed upon Amerisc a duty to Abetta to exercise a reasonable degree of care in notifying the appropriate primary or excess insurer of any claim reported to it by Abetta" (Abetta Boiler & Welding Serv., Inc., 76 AD3d at 413).