Whilst there are some people and some businesses who arrange their insurance directly with insurance companies, the majority of insurance policies are made with the help of an insurance broker. The insurance broker acts as an intermediary between their clients and insurance suppliers, with the aim of finding the best insurance solutions for their clients. Their clients could be either individuals or companies. The broker should, however, be independent of the insurance company.
Such insurance brokers usually get paid commission for the introduction of any new business to an insurance company.
Unfortunately professional negligence claims against insurance brokers are quite common.
Need advice on a possible claim against an insurance brokers? Call our expert professional negligence team on FREEPHONE 0800 1404544 for FREE initial phone advice – with no strings attached.
Proving Insurance Broker Negligence
To succeed in any professional negligence claim against insurance brokers, you will need to prove;
- there was a duty of care owed by your insurance broker to you. The good news here is that the usual relationship between clients and insurance broker should be enough for such a duty of care to be established AND
- your insurance broker acted negligently i.e. their behavior was below the reasonable level of skill or care which you expect a competent professional insurance broker to provide AND
- That you suffered some financial loss as a direct result of the broker’s negligent behavior.
Common types of Insurance Broker Negligence
Types of insurance that insurance brokers can help with and which can give rise to professional negligence claims, include motor insurance, home insurance, professional indemnity insurance.
A significant number of successful professional negligence claims against insurance brokers tend to relate to business insurance – simply because of the sums involved,
And the kind of mistakes they can make which can give rise to negligence claims, include the following;
- Failure to put insurance cover in place. This is the most basic error, and the one which usually gives rights to the largest compensation claim
- Arranging insurance – but not the terms of cover required by the client
- Not acquiring adequate protection for the needs of your business
- Not keeping the client fully aware as to the existence or non existence of a valid policy or details of the terms of that policy
- Failing to arrange insurance reasonably quickly
- Misrepresenting the clients position to the insurance company
- Failure to disclose all relevant facts to the insurance company
- Not assessing all of the relevant risk factors involved with a particular client
- Mis-selling insurance policies [ e.g. payment protection insurance]
- Not sourcing the best possible deal for their client
- Not providing the right professional advice
If you think your insurance broker is guilty of any of these issues, you might want to think about the possibility of negligence litigation.
Do I have grounds for an insurance broker negligence claim?
Even if your broker is responsible for one of the mistakes above, there are two further steps you will need to prove in order to win compensation
- That the brokers acts or advice was actually negligent – ie below what you would expect from a reasonably competent insurance broker
- That you suffered financial loss as a direct result of that negligence
It’s also worth considering the value of that loss. Even if you do have potential claim against a broker, it may not prove practical to issue a formal claim if the value of financial your loss is not high. Remember, professional negligence claims are expensive and if court action is required, they can be remarkably slow.
How we can help
- We can make a detailed assessment of your potential insurance brokers professional negligence claim and let you know whether you have a strong claim for compensation and the likely level of damages you could receive if your claim is successful
- We can advise on the right with funding your claim – whether any insurance you have covers legal costs – and explaining the alternatives of a no win no fee agreement or paying privately. Click here to read more about your funding options – and in particular no win no fee
- We can help you wherever you live in England and Wales – advising you by e-mail, phone or Skype
*FREE initial phone advice-contact our specialists today
Thinking of making a claim? Don’t delay
If you are thinking about making a claim against a negligent professional, it’s important to contact our professional negligence claim solicitors as soon as possible – any claim against a negligent insurance broker involve strict time limits – so don’t miss out on your opportunity for compensation by leaving it too late – contact our specialists as soon as you think you have a claim.
Contact our Professional Negligence Lawyers as soon as you think you have a claim
For a FREE first phone consultation on your Insurance Broker Negligence claim, contact us;
- call FREEPHONE 0800 1404544 or
- use the contact form below:
Comments or questions are welcome.