Colorado Judge Rules on Insurance Broker Contract Breach

A federal judge in Colorado ruled that a retail broker violated its brokerage contract with Recapture Insurance Inc. by engaging directly with an insurance carrier without Recapture’s involvement. Judge Nina Y. Wang issued a September 30 order rejecting the retail broker’s defenses and granting Recapture summary judgment on the issue of liability. Recapture Insurance Inc. had previously assisted HUB International Northeast Limited, a retail broker for companies in the ambulance industry.

The ruling establishes that a retail broker can be held liable for breaching an exclusivity provision in its brokerage contract. This decision clarifies the contractual obligations and operational boundaries between wholesale and retail insurance brokers.