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NH Hoteliers Score Partial Coverage Win In COVID-19 Suit
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Insurer Says It Lost $3M Because RSM Audit Missed Fraud
Law360 (February 5, 2021, 9:36 PM EST) Philadelphia Indemnity Insurance Co. says in an Illinois state court suit that consulting firm RSM US LLP should be on the hook after the insurer paid $3 million to cover damages its insured incurred after RSM failed to detect management-level fraud during an audit.
The insurer claims in a suit filed Wednesday that RSM s failure to conduct a proper probe of Insureon Holdings LLC s financial records caused the insurance company to later pay out the $3 million policy limits under its insured s fidelity and employee theft insurance policy.