Insurer Awarded Summary Judgment in Ike-Related Professional Liability Coverage Action

HOUSTON — A Texas federal judge has awarded summary judgment to an insurer in a professional liability coverage dispute relating to claims asserted against an insurance broker arising from Hurricane Ike property damage, ruling that the broker’s claim for coverage is time-barred.

On May 18, Judge Lee Rosenthal of the U.S. District Court for the Southern District of Texas concluded that policyholders’ claims asserted against the broker were “made” before the professional liability policy period was in effect and therefore not covered.

Insurance broker Southwest Risk L.P. formed the American Real Estate Advisory Council L.L.P. (AMREAC) to provide insurance for …