An insurance agency that allegedly failed to tell a beverage company that its warehouse sat in a 100-year flood plain is being sued by the beverage company, which later suffered an $8.4 million in flood damages.
Latrobe-based LeNature’s Inc. recently filed suit against Pittsburgh-based Seubert & Associates Inc., claiming the agency didn’t recommend that the beverage maker buy coverage from the federal National Flood Insurance Program. LeNature’s needed that coverage because its Youngwood facility sat in a flood plain, according to the Westmoreland County Court lawsuit.
During the September floods caused by the remnants of Hurricane Ivan, floodwaters destroyed tea leaves and supplies stored at the warehouse, the lawsuit said. It said the company lost several million dollars because of business interruptions caused by the flood.
Because of the flood plain issue, the company’s insurance carrier, Continental Casualty Co., of Chicago, refused to pay a claim on the company’s business interruption policy, LeNature’s said.
LeNature’s is seeking punitive damages and the return of a substantial portion of $1.6 million in premiums it paid to Seubert and Continental Casualty.
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