Compensation for negligent insurance broker advice

At Nelsons, our experts in Derby, Leicester and Nottingham have a detailed understanding of bringing professional negligence claims against insurance brokers and can guide you every step of the way. This includes explaining the options for funding an insurance broker negligence claim and the legal procedures required to bring a claim through the Court.

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What is insurance broker negligence?

Insurance broker negligence occurs when a broker fails to provide the standard of care expected in their profession. This can include:

  • Obtaining insurance which does not cover the appropriate amount. That is, under-insuring the client.
  • Failing to pass on the details of new claims to the underwriting insurers and/or failing to notify new claims correctly.
  • Failing to ensure that all risks are covered.
  • Failing to renew a policy of insurance when under instructions to do so.
  • Failing to obtain all material information or pass readily accessible information to underwriting insurers which results in avoidance by the insurer.

How we can help

Both businesses and individuals can bring negligence claims against insurance brokers. Our experienced team of legal experts, led by Partner, Daniel Brumpton, has extensive experience handling insurance broker negligence claims. We offer:

  1. An initial consultation – We’ll assess your case and provide honest, straightforward advice on your options.
  2. Thorough investigation – Our team will meticulously examine your case, gathering evidence to support your claim.
  3. Expert negotiation – We’ll engage with insurance companies and brokers on your behalf, striving for a fair settlement.
  4. Litigation support – If necessary, we’ll represent you in Court, fighting for your rights and the compensation you deserve.
  5. Clear communication – Throughout the process, we’ll keep you informed and explain complex legal concepts in plain language.

We have acted in numerous insurance broker negligence claims, for example:

  • We acted for an agricultural land owner whose insurance broker under-insured him in respect of his farm outbuildings. When our client suffered a fire at his farm he was not insured for the vast majority of the damage. We were able to successfully bring a claim against his brokers for their failure to under-insuring him.
  • We acted for a professional service provider who gave regulated advice. Our client was the subject of claims against them and, therefore, asked their broker to notify their professional indemnity insurers. The broker failed to adequately do this and the underwriting insurers avoided paying the claims. Our client was able to bring a successful claim against their brokers for the value for which they should have been insured.
  • We acted for an engineering client, who faced with a professional negligence claim, reported the matter to his insurers only to discover the claim was excluded by a specific term in the policy which he had not been advised of by his insurance brokers. Our client was able to make a successful claim against his broker.

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Why choose Nelsons?

  • Expertise – Our team has a proven track record in insurance broker negligence claims and is recognised in independently researched legal directories, including The Legal 500.
  • Client-focused approach – We prioritise your needs and tailor our services to your specific situation.
  • Transparency – We offer clear fee structures and regular updates on your case progress.
  • Comprehensive service – From initial consultation to final resolution, we’re with you every step of the way.

Testimonials…

  • “Nelsons...client roster includes high-net-worth individuals, sports professionals and property businesses. It handles claims against solicitors and barristers, financial advisers, insurance brokers, surveyors and architects, among others..."

    The Legal 500

  • "...It has a notable specialism in defending professionals against claims where there is no insurance cover in place or where cover has been reserved. Although it predominantly acts for claimants, the team is also engaged by insurance companies on the defendant side.”

    The Legal 500 (Continued)

For more information about making a negligence claim against an insurance broker, contact our expert team of professional negligence claims solicitors in Derby, Leicester and Nottingham via our online enquiry form or call 0800 024 1976 for a guaranteed response.

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Insurance Broker Negligence Claims FAQS

Below, we have answered some frequently asked questions concerning insurance broker negligence claims

  • How do I know if I have a valid insurance broker negligence claim?

    You may have a valid claim if you’ve suffered a financial loss due to your insurance broker’s actions or inactions. Common signs include:

    • Discovering you’re underinsured after making a claim
    • Being denied coverage for a risk you thought was included in your policy
    • Receiving incorrect advice that led to financial loss
    • Finding out your broker failed to disclose important information to the insurer

    If you’re unsure, it’s best to obtain specialist legal advice.

  • What are the time limits for making an insurance broker negligence claim?

    In most cases, you have six years from the date of the negligent act to make a claim. However, if you only discovered the negligence later, you may have three years from the date of knowledge. It’s crucial to seek legal advice as soon as you suspect negligence, as these time limits can be complex.

  • What compensation can I expect from a successful claim?

    Compensation typically aims to put you in the position you would have been in had the negligence not occurred. This may include:

    • The amount of an insurance claim that wasn’t paid due to inadequate coverage
    • Additional costs incurred due to incorrect advice
    • Compensation for distress and inconvenience

    The exact amount will depend on the specifics of your case.

  • How long does an insurance broker negligence claim take?

    The duration of a claim can vary widely depending on its complexity and whether it’s settled out of court or goes to trial. Simple cases might be resolved in a few months, while more complex cases can take a year or more.

  • Will my case go to Court?

    Many insurance broker negligence claims are settled out of court through negotiation. However, if a fair settlement can’t be reached, we’re prepared to take your case to court to fight for your rights.

  • Can I claim if my broker is no longer in business?

    Yes, it’s often still possible to claim even if your broker is no longer trading. Insurance brokers are required to have professional indemnity insurance, which may cover claims made after they’ve ceased trading.

  • What evidence do I need to support my claim?

    Useful evidence can include:

    • Correspondence with your broker
    • Policy documents
    • Details of any financial losses
    • Evidence of what you told your broker about your insurance needs

    Don’t worry if you don’t have all of this; we can help you gather the necessary evidence.

  • Why should I choose a solicitor to handle my claim?

    Insurance broker negligence claims can be complex, involving detailed analysis of insurance law and professional standards. An experienced solicitor can:

    • Accurately assess the strength of your claim
    • Gather and present evidence effectively
    • Navigate complex legal procedures
    • Negotiate with insurers and their legal teams
    • Represent you in court if necessary

    At Nelsons, we have extensive experience in this area and are committed to achieving the best possible outcome for our clients.

    If you have any other questions about insurance broker negligence claims, please don’t hesitate to contact us for a free initial consultation.

Get in touch

Speak to us now on 0800 024 1976Email Us

Our East Midlands Offices

Nelsons Derby

Tel: 01332 372372

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Nelsons Leicester

Tel: 0116 222 6666

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Nelsons Nottingham

Tel: 0115 958 6262

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