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Insurance Broker Negligence

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.

Who are professional brokers?

Individuals and businesses commonly use insurance brokers for insurance products, with the broker typically acting as a third party intermediary between the customer and the insurance company.

Brokers listen to their client’s needs and will seek out suitable insurance cover based on this (of which they receive a commission for), managing the claim and notifications to the underwriting insurer.

It is the broker’s responsibility to assess various insurance products from a range of insurers to identify the policies which best meet the needs to the client.

Insurance brokers may work in the following areas:

  • Vehicle insurance
  • Property insurance
  • Employers liability
  • Public liability
  • Professional indemnity
  • Travel insurance
  • Legal cover

A Broker’s duty of care

As with all professionals, a broker has a basic duty of care owed to their clients, and it is expected they provide this at a minimum.

In general terms, an insurance broker has the following duties of care:

  1. Identify the type and extent of the cover needed by the client
  2. Arrange the cover for the client in good time
  3. Ensure the risk is fairly and accurately presented to the insurer
  4. Explain the terms of the cover to the client

Insurers often have a bad image when dealing with professional negligence claims, but sometimes the fault lies with the broker and you may be able to claim insurance broker compensation.

What is Insurance Broker Negligence?

There are many ways a broker can fall below a reasonable standard of care, for instance:

  • A total failure to effect the insurance
  • Underinsuring the risk
  • Failure to obtain all relevant information from the client
  • Not following the instructions/requests of the client
  • Misrepresenting the risk so the insurer successfully denies the claim
  • Failing to act with reasonable speed
  • Mishandling a claim
  • Inadequate insurance cover

The above is not an exhaustive list, so it is important to get in touch with us to arrange your free initial consultation to assess your options.

It is important to note that poor advice or service from a broker is not always considered negligent in the eyes of the law.

Flexible funding options

Our flexible funding options aim to ensure everyone has access to legal support, despite their financial situation.

Depending on the nature of your claim and how successful we deem this to be, we will be able to offer you a suitable funding option that will suit you and ease the financial burden of pursuing a claim.

Take a look at our fees page here for more information or get in touch with our team to fully understand your options.

If you feel you have suffered a loss due to the negligence of your insurance broker or insurer, contact the Specters team today for and arrange your free initial consultation. Freephone 0300 303 3629 or start your claim here.

To get in touch with the Specters team, submit an enquiry below or call us on 0300 303 3629.

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