Insurance Brokers have a duty of care, which links back to performing their job’s responsibilities adequately. If this has not occurred, they may have acted negligently.
Insurance Broker Negligence
Individuals and businesses frequently engage insurance brokers to secure appropriate insurance products, with brokers serving as intermediaries between the customer and the insurance company.
Brokers are entrusted with understanding their client’s needs and sourcing suitable insurance coverage accordingly, for which they receive a commission. They manage the entire process, including claims and notifications to the underwriting insurer. It is the broker’s responsibility to evaluate various insurance products from a range of insurers to identify policies that best meet the client’s specific requirements.
When does insurance broker negligence occur?
There are numerous ways in which a broker can fall below the expected standard of care, including but not limited to:
• Failing to secure the necessary insurance coverage
• Underinsuring the risk involved
• Not obtaining all pertinent information from the client
• Disregarding the client’s instructions or requests
• Misrepresenting the risk, leading to a denial of the claim by the insurer
• Failing to act with appropriate speed
• Mishandling claims
• Providing inadequate insurance cover
Making a claim for insurance
broker negligence
If you have suffered financial loss due to the negligence of an insurance broker, it is crucial to take action to seek the compensation and justice you deserve.
To bring forward a claim, you will need to demonstrate that the broker:
- owed you a duty of care
- breached that duty by failing to provide appropriate advice or service
- this breach directly resulted in your financial loss
At Specters, we offer expert guidance throughout this process, from gathering essential evidence to navigating the complexities of legal proceedings. Our experienced team is dedicated to meticulously managing your claim, ensuring that every aspect is handled with the utmost professionalism.
We are committed to protecting your rights and securing a favourable outcome, providing you with the support and expertise needed to hold negligent brokers accountable.
Our broker negligence solicitors
Frequently asked questions
What types of losses can I claim for in an insurance broker negligence case?
You can claim for a variety of losses, including financial losses due to inadequate or inappropriate insurance coverage, additional costs incurred from denied claims, and any other expenses that directly resulted from the broker’s negligence.
How long do I have to file a claim for insurance broker negligence?
In the UK, you typically have six years from the date of the negligent act to bring a claim. If you only became aware of the negligence at a later date, you may have three years from the date you discovered the issue to file your claim.
What evidence do I need to support an insurance broker negligence claim?
Evidence can include correspondence between you and the broker, the insurance policy documents, records of the broker’s advice or recommendations, and any documentation showing the financial loss you have incurred. Expert testimonies may also be necessary to establish the broker’s breach of duty.
What should I do if I suspect my insurance broker has been negligent?
If you suspect negligence, it is important to act quickly. Gather all relevant documents and seek advice from a a member of our team who specialise in insurance broker negligence to assess your case and explore your legal options.
Can I settle my claim out of court?
Yes, many insurance broker negligence claims are settled out of court through negotiation or mediation. This can be a quicker and less costly way to resolve the issue, depending on the willingness of the broker or their insurance company to settle.
