No Bad Faith Where Policy Did not Cover Claim
In Brown v. Oklahoma Farm Bureau, Brown was sued for negligently conducting a house inspection. Although his policy was issued by AG Security, he sued both AG and Oklahoma Farm Bureau. The court found that Oklahoma Farm Bureau was not liable on the claim because it did not issue the policy, even though it handled the claims for AG.
The court found that Brown's alleged negligent inspection did not cause property damage, a requirement for coverage under the policy. Further, even if it had, the professional services exclusion (the exclusion excluded coverage for property damage resulting from "rendering of or failure to render professional services in the performance of any claim, investigation, adjustment, engineering, inspection, appraisal, survey or audit services.") precluded coverage for the claim.
There were coverage issues so that the bad faith claim was properly dismissed; further, the exclusion applied, so the contract claim was properly dismissed.
