Case Intel
- A Florida yacht brokerage group says its insurer wrongly refused to defend it in a federal antitrust suit.
- A magistrate judge agreed with the insurer, but the brokers argue the ruling misread the policy.
- The decision could set a precedent on how broadly insurers can apply exclusions to dodge coverage.
By Samuel Lopez — USA Herald
MIAMI — The International Yacht Brokers Association (IYBA) has taken its insurer back to court, claiming a federal magistrate judge got it wrong when she ruled that their liability policy doesn’t cover defense costs in an ongoing antitrust case.
The insurer, United States Liability Insurance Co. (USLI), a Berkshire Hathaway subsidiary, invoked what’s called a “standard setting” exclusion — a clause that allows insurers to deny coverage if the claim involves rule-making, accreditation, or certification by the insured. USLI insists that the yacht brokers’ alleged conspiracy to inflate commissions is just such an excluded activity.
IYBA says that logic doesn’t hold water, and if left standing, the ruling will let insurers sidestep obligations far beyond what policyholders bargained for.
