The Fidelity & Casualty Company of New York v. Tillman Corporation

EASTERBROOK, Circuit Judge.

When at the close of 1990 Jack Hubbard created Tillman Corporation to enter the construction business, he asked Elmer Lay-den to secure the necessary insurance. Through his insurance brokerage (Elmer Layden, Inc.) Layden obtained several liability policies for Tillman, but workers’ compensation coverage was hard to come by. Lay-den submitted an application on Tillmaris behalf to the Indiana Compensation Rating Bureau, which manages that state’s assigned-risk pool. Tillman estimated that its payroll for 1991 would be $150,000, which under the state’s rules required…