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Ruling helps define scope of insurance brokers’ duties, Daily Journal

Posted Mar 17, 2014

By Hsiao (Mark) Mao, Esq. and Jonathan Yee, Esq.
(March 17, 2014)

California courts have been struggling for years on the breadth of fiduciary duties owed by an insurance broker to insureds. The 3rd District Court of Appeal’s recent decision of Mark Tanner Construction Inc. v. HUB International Insurance Services Inc., 2014 DJDAR 2873 (March 10, 2014), will further limit the duties owed by insurance brokers.

At issue in Hub International is a failed self-insured workers compensation program for contractors, Contractors Access Program of California (CAP). Compensation Risk Managers of California LLC (CRM) administered CAP, and Diversified Risk Insurance Brokers, later acquired….

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