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Claim Reviews
CTL for property
brokers
These sample claims illustrate how valuable a Professional Liability policy is in managing your business risks. Property brokers spend years building value in their business, but your company could find itself in one of the following disastrous situations. Make sure you have adequate coverage to protect your investments.
Wrongful Delivery of Goods
Errors & Omissions (E&O)
A shipment of shoes was arranged by the property broker and delivered to the consignee. The carrier was to collect payment, but the receiver would not pay because of a quality issue. The carrier could not take a return shipment, so
he left the shipment of shoes at the consignee’s premises. The shipper sued the property broker for the selling price of the shoes for the lost sale because the consignee went out of business and the shoes could not be recovered. The file was referred to an attorney for handling under the broker’s Professional Liability policy. The attorney got the settlement amount reduced; the legal fees were covered minus the deductible.
Claim Amount: $150,839
Settlement: $100,000
Legal Fees: $17,500
Insured’s Deductible: $10,000
Negligent Selection of Carrier
Contingent Cargo Legal Liability
A property broker contracted with a carrier to transport a full trailer of candy across
the country. The agreement was for a team of drivers to haul the trailer in a two-day period. Reportedly, only one driver was hired and fell asleep at the wheel. As a result, the driver was involved in an accident that totaled the cargo. The trucker’s insurance company settled the claim with the claim payment made to the trucker. The trucker failed to remit the insurance payment to the claimant and subsequently filed for bankruptcy. The claimant filed a lawsuit against the property broker for the cargo loss.
Claim Amount: $85,290
Settlement: $15,000
Legal Fees: $2,125
Insured’s Deductible: $5,000
Improper Temperature Setting
Errors & Omissions (E&O)
A property broker shipped 1,080 boxes of wild boar meat from Texas to New York which required temperature of -20°C for the container. The carrier set the temperature on the container to -2°C for chilled meat instead of -20°C for frozen meat. The meat arrived at its destination and
was refused on the basis that the temperature setting on the refrigeration unit did not match the temperature noted on the bill of lading. The shipper sued the property broker for the amount of the shipment that could no longer be sold. The Professional Liability
policy paid for all legal fees minus the deductible.
Claim Amount: $92,859
Settlement: $0
Legal Fees: $9,760
Insured’s Deductible: $5,000
Avalon offers a Combined Transit Liability (CTL) policy which provides seamless coverage for all your professional and legal liability needs. The CTL policy combines E&O insurance and Contingent Cargo Legal Liability and can also be tailored to meet a company’s business needs. Optional coverage such as Contingent Auto and Contractual Liability can be also be added to the CTL policy. For more information on Avalon’s CTL coverage or an application, visit
www.avalonrisk.com.
For further information, contact your local Avalon office or
Kim Beiswanger, Product Manager at Avalon’s corporate
headquarters. Kim can be reached at her direct line:
(847) 700-8076 or at
kbeiswanger@avalonrisk.com.
To view a directory of Avalon’s office locations, please
visit our Web site at
www.avalonrisk.com.
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