Evan Schwartz, Founder and CEO, and Stephen Broer, Of Counsel
A large New York plumbing company hired Schwartz, Conroy & Hack to pursue State Farm Insurance Company for selling the company a policy without proper coverage.
The Challenge
The plumbing company had a commercial vehicle policy with another insurer before switching to State Farm. The company’s prior policy contained “hired and non-owned auto coverage,” which provides coverage when a company does not own the vehicle(s) it uses for its business – but rents, leases or hires someone else’s vehicle(s). When switching policies, the plumbing company requested a policy that provided the same coverage as the prior policy. But the policy that State Farm sold to the company did not have that coverage.
One of the company’s drivers was involved in a motor vehicle accident, and an injured party brought a personal injury lawsuit against the driver for millions of dollars. The plumbing company, believing its policy had hired and non-owned auto coverage to protect the driver, gave the lawsuit to State Farm, which denied coverage. The driver had his own coverage, but it was not enough to shield the plumbing company in the lawsuit.
The Solution
After State Farm denied its claim, the plumbing company hired Schwartz, Conroy & Hack. Although the denial itself was proper as the policy did not cover the lawsuit, attorneys Evan Schwartz and Stephen Broer identified that State Farm should still be responsible for the claim, since our client had asked for the same coverage as its prior policy and did not get it when switching its coverage to State Farm. We commenced a lawsuit against State Farm and its general agent for negligence for their failure to add hired and non-owned auto coverage. Because agents for State Farm only sell State Farm products, anything they do or fail to do is the responsibility of the parent company, State Farm.
The Result
Rather than litigate the case we filed, State Farm agreed to fully cover our client in the lawsuit. Our pre-lawsuit due diligence and understanding of the facts and the law led to a quick and inexpensive victory for our client.
If your insurance claim has been denied or is being challenged, contact Schwartz, Conroy and Hack, PC. We have the expertise and tenacity to make insurance companies keep the promises they made to you and your business.
