Most business owners would assume the broker is on the hook. In C&C Operating, Inc. v. American Automobile Insurance Co. (Sup. Ct. Westchester Cnty., Sept. 11, 2026), the court disagreed. It dismissed every claim against the broker at the pleading stage, before any discovery, and refused to let the owner try again.

Here’s why. In New York, a broker’s duty is generally defined by what the client specifically asked for. Asking for “adequate coverage” is a general request, and that isn’t enough. To hold a broker liable for failing to get coverage, or for failing to recommend it, the client has to show one of two things:

A specific request for the exact coverage that turned out to be missing, or
A “special relationship” that goes beyond the ordinary broker-client relationship. Courts look for things like extra pay for advice beyond the commission, the client relying on the broker’s expertise about a specific coverage question, or a long course of dealing where the broker knew its advice was being relied on.

The complaint in this case alleged neither. The court also found that discovery wouldn’t help. The owner already knew what it had asked for and what kind of relationship it had with the broker, so it should have pleaded those facts from the start.

The lesson for business owners is to put your coverage requests in writing, and to be specific about the risks you need covered. Don’t just say “cover my business.” If you’re relying on your broker’s expertise, make sure your correspondence shows it. When a claim is denied, the first fight is usually with the carrier, and the policy language matters more than anyone’s assurances.

If your business, building, or tenancy has been denied coverage, we offer a free review of your policy and the denial.