The insureds' negligence claim against the insurer for failing to recommend the purchase of business interruption insurance survived the insurer's motion for partial summary judgment in St. Augustine High School v. Underwriters at Lloyd's of London, No. WMN-08-CV-2518, 2010 U.S. Dist. LEXIS 6570 (D. Md. Jan. 27, 2010).

   St. Joseph Society was the owner and operator of St. Augustine High School, which was damaged by Hurricane Katrina.  The insurer argued there was no evidence St. Joseph had been damaged by the alleged negligence in failing to recommend business interruption coverage.  St. Joseph argued, however, it suffered losses as the owner and operator of St. Augustine.  Further, St. Joseph had to loan money to St. Augustine because it had no business interruption coverage, causing St. Joseph to lose investment income.  Moreover, St. Joseph was a named insured on the policy it purchased for St. Augustine High School and would have been entitled to any insurance payments.

   The insurer, on the other hand, argued that where a policy insuring loss to property names multiple assureds, each assured can only recover for the loss sustained by that insured, according to its interest.

   The insurer's motion for partial summary judgment was denied.  Whether St. Joseph could be found to have been damaged as a result of its ownership and operational responsibility for St. Augustine, its loss of investment income, or as one of the named assureds on the policy was a question of fact.