Stradford v. Zurich Insurance Co.

Stradford (plaintiff), a dentist, had his office insured by Zurich Insurance Co. (defendant). After Stradford briefly lapsed on premiums in 1999 and Zurich cancelled and then reinstated the policy, he submitted a water-damage claim just ten days later for frozen pipes and dental supplies totaling $151,000, and after Zurich paid that claim, he submitted a revised claim for $168,000 in property damage plus $1.2 million in business-interruption costs. When Stradford sued for payment under the policy, Zurich counterclaimed for fraud.