Legal Hurdles for Insurance Agency Over Loss-Run Inaccuracies
A Berkshire Hathaway insurance division faces legal proceedings over alleged inaccuracies in published loss-run records, leading to a Georgia insurance agency's closure. On January 23, 2026, Nigel Francis and the Francis & Francis Insurance Agency filed a lawsuit in the U.S. District Court for the Northern District of Georgia against biBERK Insurance Services, Inc. and National Liability & Fire Insurance Company. Central to this case is the management of underwriting records by insurers and the potential impacts of data inaccuracies on regulatory compliance requirements.
Accusations of Data Mismanagement
Francis's agency specialized in insurance for commercial trucking and motor vehicles, generating significant monthly premiums in 2024. It partnered with several carriers necessitating continuous errors and omissions insurance, provided by the defendants in the lawsuit. The situation escalated on September 4, 2024, when Angelyn Hart contacted biBERK, accusing Francis of misconduct and improper rating of her Maserati for insurance.
These accusations were reportedly personal and unrelated to Francis's professional responsibilities. Evidence, available to biBERK from the start, allegedly contradicted Hart's claims. On September 5, 2024, Hagerty Insurance confirmed in a recorded call that Hart's policy was active, supporting Hart's police report. A senior claims representative at biBERK assured Francis that these issues were personal and "would not affect" his policy.
Impact of Inaccurate Loss Run
However, on March 21, 2025, biBERK reportedly issued a loss run claiming Francis's incorrect rating caused Hart's policy cancellation. This led to Progressive Insurance terminating its producer agreement with Francis upon receiving the documentation. Other carriers followed, refusing new business or cutting ties with the agency, impacting its risk management strategies.
The agency's challenges deepened with a nonrenewal notice in January 2025 based on "unfavorable loss experience" and denial of extended reporting coverage. Despite Hagerty's confirmation in July 2025 that Hart's policy wasn't affected by rating issues, the disputed loss run allegedly persisted, forcing the agency to close by March 2025.
Legal Claims and Ongoing Proceedings
Francis's lawsuit seeks damages and a court order to amend and withdraw the erroneous loss-run entries. The claims include defamation, tortious interference, negligent misrepresentation, and breach of the implied covenant of good faith and fair dealing. The case remains active, with no final judgment and no official response from the defendants at this time.