Claim Against Insurance Broker Time-Barred

A California Court of Appeal has affirmed summary judgment for an insurance broker based on the statute of limitations set forth in California Code of Civil Procedure section 339(1) which provides a two year limitation period for general negligence claims. Pacific Environmental Resources Corporation v. INSPRO Corporation et al., California Court of Appeal No. B222303, Los Angles Superior Court No. BC402419. The unpublished Second Appellate District decision can be found here. The Court held that the plaintiff knew or should have known of its broker’s alleged negligence and had sustained damage more than two years prior to filing suit.

The plaintiff claimed that the broker was to procure a policy on which the plaintiff would be named as an additional insured in connection with a wastewater treatment plant construction project. The policy did not name the plaintiff as an additional insured, but rather provided less extensive coverage under a vicarious liability endorsement. The policy was issued and sent to the plaintiff to review, accompanied by a cover letter asking the plaintiff to review the policy to ensure that it provided the desired coverage. The plaintiff did not request any changes and the construction project went forward.

Please see full article below for more information.