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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Making an insurance broker negligence claim
Insurance brokers are usually instructed by individuals or businesses to arrange and secure insurance. Brokers should be independent. They receive a commission from the insurance company to whom they introduce clients. Brokers also act as an intermediary between their clients and the insurance company. They can take on a claims management role, assisting their clients in notifying claims to the insurance company who are underwriting the matter.In order to bring a professional negligence claim against an insurance broker we will need to prove they have breached the duties of care they owe to their clients. This is usually accomplished through obtaining a report from another insurance broker to comment on whether the work undertaken fell below the standard to be expected of a reasonable broker. This is something we can discuss and provide assistance in obtaining.
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Examples of insurance broker negligence
The list below is not intended to be exhaustive, so if you think you have a claim against your insurance broker, and you cannot see an example, please contact us for a no-obligation initial telephone assessment.
- 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, who is recognised in independently researched legal directories, including The Legal 500.
We have acted in numerous 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.
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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