Legal Question in Business Law in Iowa

I have a demolition company and was looking at bidding a job for the city. I called an insurance agent that had supplied insurance for me before and agent said he was familiar with the citys requirements could get me coverage go ahead and bid job and add in an extra $3000.00 for insurance . so I bid the job and was awarded the contract then called the agent back and he said the insurance would be $4300 and the company wouldnt do anything without a check so I took him a check and he told me he would have the papers I needed the next day . The next day I call to get the papers and he says hes not going to be able to get me coverage.. Now I was working with this agent for three weeks and he backed out at the last minute so my time limit ran out and the city took the bid away. I find out that another agent in his office is working with one of the contractors I was bidding against. My question is can I sue him for damages because if he wouldnt have lead me to beleive he could get me insurance I could of contacted other agencys because after he couldnt get coverage I did get coverage from another agency but not in time for the job.


Asked on 10/19/11, 5:19 pm

1 Answer from Attorneys
Robert Luedeman solo practitioner

You can always sue the agent for interference with prospective business relationships, but the standard of proof is going to be pretty high and the chances of recovery slim, not to mention the cost of litigation. I suggest you consult with an attorney to see whether it is worth your while.

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Answered on 10/20/11, 7:49 am


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