“On Nov. 19, 2012, the New York Court of Appeals in American Building Supply Corp. v. Petrocelli Group Inc. et al. ruled for the first time on the issue of whether an insured’s receipt of the insurance policy without complaint barred an E&O claim against an insurance agent or broker,” write Matthew S. Marrone and Colleen M. Murphy, Co-Chairs of Goldberg Segalla’s professional liability practice focused on insurance agents and brokers.

“The Court of Appeals concluded that ‘The [insured’s] failure to read the policy, at most, may give rise to a defense of comparative negligence but should not bar, altogether, an action against a broker.’ The ruling is a significant decision that is likely to influence other jurisdictions. It is a call to insurance agents and brokers to revisit and fortify their loss control procedures.”