In Lloyds of London, et al. v. IMAK, in State Court in Texas, the plaintiffs alleged that the defendant’s actions resulted in a loss of business revenue. The defendants, who were insurance brokers, allegedly misrepresented the type of business insurance coverage that was being offered by the plaintiff’s insurance agents. The defendant brokers provided various types of business insurance, including food borne illness policies, to restaurant franchises.
Following a massive food borne illness outbreak, the plaintiffs were ordered by the court to pay the restaurant franchises for their business losses. The plaintiffs contend that the defendant brokers misrepresented the insurance coverage that they were providing and that the restaurants were not covered by the policies that were provided to the franchises.
In our analysis, we studied the insurance companies underwriting policies, insurance revenue, business profits, and cost structure to determine the lost business profits incurred by the plaintiffs. The jury found the defendants liable and awarded the plaintiffs the full amount of economic damages that they were seeking.
Dr. Dwight Steward testified live at trial regarding the lost business profits.