E&O Policy Comes Through For Broker’s WC Mishap
By Robert Warne - September 25, 2003 An Imperial Valley Supervisor and insurance broker is expected to pay $500,000 for a worker’s death that was facilitated by a worthless certificate of insurance he issued in 1996.
With his August trial date fast approaching, Supervisor Hank Kuiper made an offer Aug. 13 that was accepted by all parties involved except for two co-defendants.
But despite the co-defendan’s objections, his insurance carrier has filed a motion with the judge for the offer to be accepted.
Kuiper’s $500,000 settlement offer represents his total errors and omissions coverage, and if accepted, Kuiper will be relieved of any further obligation for indemnity once the settlement is paid.
Kuiper had maxed out all of his resources to secure a work comp policy for Joadd Construction prior to issuing the company a certificate of insurance May 15, 1996.
The certificate then enabled Joadd Construction to get a business license from the city of Brawley and get a building permit.
Then on July 26, 1996 Daniel Davila fell off the roof and died while working for Joadd Construction on the project that Kuiper’s bogus insurance certificate helped the company to get the building permit for.
Michael Barraza also fell from the roof that day, but he survived despite a broken ankle and severe facial injuries.
According to the Imperical Valley Press, Kuiper said he phoned the city of Brawley July 20, 1996, to inform the city of his mistake. He even claims he talked to somebody that day, a feat that is suspect because it was a Saturday and the city’s administrative offices were closed.
The city did receive a cancellation notice in the mail from Kuiper July 31, 1996, five days after the accident.
In his defense Kuiper told the Imperial Valley Press that the fact that his insurer was involved and helping him to settle the case proves that issuing the certificate of insurance was a mistake absent of fraudulent intentions.
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