Certificate of insurance found not to have changed the terms of the policy: ANN TAYLOR, INC. v. HERITAGE INSURANCE SERVICES, INC. (COA 7/11/2008)

ANN TAYLOR, INC. v. HERITAGE INSURANCE SERVICES, INC.
INSURANCE:  NEGLIGENT MISREPRESENTATION; CERTIFICATE OF INSURANCE; EXCLUSIONS
2007-CA-000317
PUBLISHED: AFFIRMING
PANEL:  MOORE PRESIDING; KELLER, THOMPSON CONCUR
JEFFERSON COUNTY
DATE RENDERED: 7/11/2008

CA affirms SJ for insurance company and broker on property loss action.

Appellant contracted with third party to transport goods; the contract included the requirement for insurance and proof thereof. Appellant secured proof of insurance in the form of a certificate of insurance ("COI") which specifically stated that it in no way altered the terms of the underlying policy. Appellant never attempted to confirm coverage under the policy. The shipment was stolen while the driver slept inside a rest stop. The policy had an exclusion for unattended shipments and refused payment. Appellant sued, arguing that the COI did not list this exclusion. Appellant alleged negligent misrepresentation.

CA held that the COI clearly does not alter the terms of the policy. Cases cited regarding differences between a COI and the policy are clearly distinguishable.

Digested by John E. Hamlet