A PAR insured placed coverage on two convenience stores. However, the producer didn’t learn there was an apartment at the same address as one of the convenience stores.

Just six days after the agency wrote this new business, there was fire damage to the apartment. Since the apartment had not been disclosed on the application, the insurer refused to pay for the damage to it.

Following a jury trial, the PAR firm was held partially responsible for the lack of coverage on the apartment, and the client was awarded $30,000. Legal expenses added another $70,000 to the total.