Intermarket Insurance Agency, Inc. recently escaped liability to
its insured on a policy placement, winning summary judgment on the
two counts of the complaint directed to it. Intermarket
placed a business personal property policy with Travelers on behalf
of Artvale, a fabric and textile wholesaler. The policy
excluded flood and sewage backup. And when Artvale moved its
inventory to a warehouse in Passaic, New Jersey, Artvale asked
Intermarket to amend the policy with Travelers to reflect the move,
which Intermarket did. Artvale did not ask Intermarket to obtain
flood coverage.
Hurricane Irene caused flooding at the warehouse on August 27,
2001, damaging Artvale's inventory. Travelers denied the
claim, relying on certain exclusions, including flood.
Artvale sued Travelers, Intermarket, and the warehouse owner.
Artvale claimed that Intermarket was negligent in not obtaining
flood coverage for Artvale, and breached its fiduciary duty to
Artvale for the same
