Insurance Broker

In the spring of 2022, Cenocore, Inc. prepared to expand its commercial footprint with the purchase of a property at 2700 E. Slauson Avenue in Huntington Park . To protect the $5 million asset, they hired Cal-Kor Insurance Services, an agency that boasted over 30 years of expertise in the Los Angeles market. However, the agency allegedly failed to secure a policy that met the lender's requirements or the building's actual replacement value. Most critically, the broker allowed a "Protective Safeguard Endorsement" to remain on the policy, which required an automatic sprinkler system that the building simply did not have. When a catastrophic fire leveled the structure on New Year’s Day 2023, the insurer threatened to deny the claim based on this impossible condition. Faced with a multi-million dollar coverage gap and a potential total loss of recovery, Cenocore sued for professional negligence . The legal battle concluded when the defendants agreed to a $2,400,000 settlement to resolve the claims of mismanagement and broker error.