Four years ago, the New York Court of Appeals issued its decision in Voss v. Netherlands Ins. Co., 22 N.Y.3d 728 (2014), which some thought might lead to more and more insurance brokers being sued by policyholders alleging that brokers had not obtained sufficient insurance or appropriate policies for them.

Several recent cases—including by the U.S. District Court for the Northern District of New York in Tracey Road Equipment v. Ally Financial, No. 5:18-CV-0011 (LEK/ATB) (N.D.N.Y. March 29, 2018), a case involving credit card fraud insurance—illustrate that such claims are carefully scrutinized by the courts. These decisions also make it clear that the floodgates have not opened and that brokers remain relatively well insulated from policyholder claims.

The Broker Liability Test