Broker/Director’s Insurance Fails to Cover Malpractice Claim
Policy excludes coverage for transactions where broker has financial interest, or is director of a party
The volunteer director of a nonprofit school in Hawai‘i who donated his services as a real estate broker and loaned the school funds to buy real estate jointly with a Buddhist temple has been denied coverage under his professional liability policy in a suit by the temple when the joint purchasers could not agree upon a division of the ownership. An appellate court in Hawai‘i has affirmed a decision that the policy specifically excluded coverage of a claim for damages. (Keown v. Tudor Insurance Company, Intermediate Ct. of App., HI, No. 29695, 8/16/12.)
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