Case Overviews:

Agent mistake—Hurricane Coverage denied

Among the cases Mr. Suggs has successfully prosecuted for small businesses is Orangeburg Sausace Company v. Cincinnati Insurance Co. (reported at 450 S.E.3d 66). In that case, a local meatpacking and processing plant suffered damage to the contents of its freezers due to a hurricane. The insurance agent who sold OSCO its policy had made a mistake in the address of the plant, although the plant and premises surrounded the end of a dead end street, and had always had the same address for the entire premises. The insurance company insisted that it would only pay for lost inventory on one side of the street, and refused to pay the other side of the street. It also refused to pay undisputed amounts of the loss until the insured accepted the insurance company's position. A jury found Cincinnati Insurance Co. to be not only negligent in its handling of the claim, but also willful and reckless. The company's behavior turned a $231,000 claim into a $2.1 million win for the small business due to the resulting award of consequential damages and punitive damages.

Building Covered—Not the Contents

Another example is Cock N Bull Steakhouse v. General Ins. Co. (reported at 466 S.E.2d 727). A locally owned restaurant suffered a fire loss. The insurance company paid $275,000 for the restaurant's building coverage, but refused about $50,000 in payment, alleging the items claimed were "contents" and not covered. The items included refrigerators and other "fixtures," which under the law are considered real estate. The restaurant owner first hired a private adjuster, who had no luck convincing the insurance company of its erroneous interpretation. This time the insurance company's bad faith converted a $50,000 debt into $1.5 million in punitive damages, upheld by the South Carolina Supreme Court on appeal.

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