KATES Detective & Security Services Agency and Special Events Services, Inc. has filed a lawsuit against several insurance brokers, alleging negligent procurement of insurance policies that left them exposed to significant financial risk. The complaint was lodged on April 30, 2025, in the Circuit Court of Cook County, Illinois, by KATES Detective & Security Services Agency and Special Events Services, Inc., targeting William Blackwell, Westlake Group LLC, Ryan Specialty Group, and RSG Specialty LLC.
The case revolves around insurance policies issued for the years 2022 and 2023 that were meant to cover KATES' security services for low-income public housing projects managed by the Chicago Housing Authority (CHA). According to the complaint, these policies contained exclusions for government-subsidized housing work—exclusions that were not disclosed to KATES at the time of procurement. As a result, when four lawsuits emerged from incidents at CHA facilities—two wrongful death suits and two personal injury claims—the insurance company denied coverage based on these exclusions. This left KATES bearing the cost of legal defense and potential liability. "Plaintiff has been incurring the cost of defense in the four claims and bears the risk of loss if found liable," states the complaint.
KATES accuses William Blackwell and his associates at Westlake Group LLC, along with Ryan Specialty Group and RSG Specialty LLC, of failing to procure adequate insurance coverage despite being fully aware of KATES' business operations with CHA. The plaintiff argues that these actions constitute negligent procurement, breach of contract, consumer fraud under Illinois law, common law fraud in inducement, negligent misrepresentation, and outright fraud. They allege that "Defendants procured and issued said 2022 Policy and 2023 Policy despite being aware that the exclusions would negate coverage for all the CHA low-income government housing security work."
In terms of relief sought from the court, KATES is demanding damages exceeding $50,000 plus costs related to attorney fees and any other relief deemed just by the court. They are also seeking punitive damages under allegations of consumer fraud.
Representing KATES are attorneys James A. Hasier from Tinley Park and Jeffrey J. Levine from Chicago. The case is identified as Case ID: 2025L005717.