“Georgia Brokers and Agents Alarmed After Court Ruling Expands Liability for Them"

Swift Currie attorney Kayla McCallum was featured in an article for Insurance Journal discussing a Georgia appeals court ruling that expands broker liability to third-party claims, and what it means for agents and the insurance market.

McCallum explained that if the opinion in Plummer vs. Commercial Insurance Agency is not overturned by the state Supreme Court, then the outcome is that a carrier could correctly deny coverage, but a broker or agent could still be held liable.

“Agents need to continue to make sure they are communicating with potential clients about coverage, and documenting the requests,” McCallum said. “Make sure you have it in writing about what type of coverage is requested.”

The Plummer opinion would make it even more difficult for many businesses to find coverage, or to find brokers willing to place it. “It’s pretty scary for insuring businesses and properties now, especially in high-crime areas,” McCallum said.

McCallum highlighted that the Georgia Supreme Court may look to court opinions from other states for guidance, including the Brown & Brown case in Florida, as they have never had a ruling similar to the Plummer decision.

To view the full article, you may click here.