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Williams v. Hilb, Rogal & Hobbs Ins. Co. (Cal. Ct. App. - Sept. 9, 2009)

By Shaun Martin

Boyhood friends John Williams and Steven Simon open up a business and ask an insurance broker to get them all the insurance they need. The broker does so, and they get an insurance policy, which they quickly review. Everything seems fine until there's a fire at the business and one of their employees is severely injured. Simon and Williams then discover that, oops, there's no workman's comp insurance. Leading to a judgment of $11 million plus, for which Simon and Williams were liable for almost $6 million.

At which point Simon and Williams sue their insurance broker. And win. Both in the trial court as well as in the Court of Appeal.

Sometimes you can legitimately rely on others. This is apparently one of those times.

Full post as published by California Appellate Report on September 09, 2009 (boomark / email).