The assigned claim against a broker was dismissed as premature because the underlying action against the insurer was not final. Mermaid Marine Holdings, LLC v. Maverick Yacht Mgmt., LLC, 2025 U.S. Dist. LEXIS 167833 (S.D. Fla. Aug. 27, 2025).

Defendant Maverick Yacht Management,, LLC (MYM) was a yacht management business. Plaintiff Mermaid Marine Holdings, LLC and MYM entered into a Yacht Management Agreement for plaintiff’s vessel. MYM maintained a general liability policy through Hiscox Insurance Company for its business. MYM procured the policy through its broker, Stacks Brokerage Corp.

After Hurricane Ian passed, MYM employees were navigating the plaintiff’s vessel when the vessel sustained damages. MYM was sued by plaintiff and submitted a claim to Hiscox. The claim was rejected because the policy excluded coverage for bodily injury or property damage arising out of the ownership, maintenance, use or entrustment to others of any watercraft.

MYM sued its agent, Stacks, for negligence in failing to procure proper coverage. MYM then assigned to plaintiff its claims, rights and other interests it had against Stacks for failure to procure liability insurance on behalf of MYM. Plaintiff sued Stacks for procuring a worthless liability policy for MYM that contained a broad watercraft exclusion. Stacks moved to dismiss arguing that plaintiff’s assigned claims had not accrued and were not ripe. MYM had not yet been found liable to plaintiff for the damages to the vessel.

Florida law permitted an insurance broker to be held liable to third parties when the broker was negligent in procuring coverage for a customer. But before a third party could seek to recover against the insurance broker, the third party had to first be successful in its action against the customer who did not have adequate insurance. Here, plaintiff had yet to obtain a judgment or a settlement against the original tortfeasor, MYM. Therefore, plaintiff’s claim against MYM’s broker was premature. A claim against an insurance broker for negligence did not accrue until the underlying action against the insurer was final. Stacks motion to dismiss was granted.