Business to Business Markets, Inc. v. Zurich Specialties London Ltd.

FACTS AND PROCEDURAL BACKGROUND

In July 2000, appellant Business to Business Markets, Inc., also known as “B2B,” hired Tricon Infotech, an Indian software company, to write a custom-made computer program for B2B’s business.. One term of their contract obligated Tricon to carry an errors and omissions insurance policy to compensate B2B if Tricon failed to deliver the promised software.

B2B thereafter contacted Hoyla, a retail insurance broker. B2B informed Hoyla of Tricon’s insurance needs, and told Hoyla that Tricon was based in India. Hoyla contacted respondent Professional Liability Insurance Services, Inc. (PLIS), a surplus lines insurance broker, to place the insurance policy and gave PLIS the information it had received from B2B. PLIS contacted Zurich Specialties London Limited, which issued a policy to Tricon. Although Tricon was an Indian company doing business in India, the policy excluded coverage for any claims arising from or related to work performed in India.

Tricon failed to deliver usable software to B2B, so B2B sued Tricon for breach of contract. Based on the insurance policy’s exclusion for work done in India, Zurich Specialties refused to pay for…