Manhattan Art Gallery Sues Insurer, Broker over Superstorm Sandy Losses

NEW YORK — A New York City art gallery that was denied coverage for property and business-related losses after Superstorm Sandy has sued Pacific Indemnity Co. and its insurance broker for misrepresenting that its policies covered all risks of loss, including flood.

Hasted Kraeutler filed the complaint Jan. 24 in New York Supreme Court, approximately one year after receiving a letter from Pacific Indemnity in which the insurer stated that it was denying the gallery’s claim for civil authority coverage of business income losses and that its loss of utilities claim was barred by a flood exclusion in the policy. …