Repo company sues insurance broker

Claimed seven counts against broker

Rhode Island Recovery and Transport thought they had added their clients as additionally insured to their repo insurance. Consolidated Asset Recovery Systems thought they had been added as well. But a wrongful repossession lawsuit shed light on a disturbing fact. Their insurance broker had failed to do so.

On March 23^rd, Rhode Island Recovery and Transport, LLC, filed a complaint against Assured Partners of Ohio, dba, Recovery Insurance Services LLC (RIS llc). In their eighteen-page complaint they allege seven counts of damages against them by their carrier dating back to 2018.

Read the Complaint Here!

Probably most damaging to Recovery Insurance Services defense is Exhibit 1, their written admission from the Principal of (RIS llc), William E. Landess to the Chairman and CEO of Prime Insurance Company, Rick J. Lindsey.

“I can confirm that my office sent a liability certificate to a forwarder Consolidated Asset [Recovery Systems Inc., aka CARS], and listed them as an additional insured. My office errored and did not send a request to your office to have Consolidated Asset added as additional insured to the policy. As your attorney rightly points out, this is our mistake.”

Among the counts alleged against (RIS llc) are; Negligence, Breach of Contract, Fraudulent Misrepresentation, Fraudulent Misrepresentation by Concealment and more.

Rhode Island Recovery and Transport is seeking compensatory damages sufficient to their damages to reputation and losses to business over the past years.

Source: Dave Branch and Repo Buzz