Failure by an insurance broker to make sure that their client has appropriate cover for its business needs may result in that client being exposed to claims for which it is not insured. In that case, there may be a claim against the insurance broker in negligence.

The broker owes a duty to act with reasonable care and skill in obtaining appropriate insurance for its client and in mediating between its client and the insurance company. The duty includes providing proper disclosure to the insurance company, to avoid an insurance company avoiding a policy through non-disclosure.

Examples of negligence by insurance brokers may include:

• Not following client’s instructions
• Not asking relevant information of the client relevant to the cover
• Not obtaining adequate level of cover
• Not making necessary disclosure to the insurance company
• Not asking the client about matters which may need to be disclosed
• Not providing information to the client about the terms of the policy
• Recommending an incorrect insurance product
• Failing to incept the policy before the expiration of the old policy
• Failing to take steps to renew a policy of insurance

Anthony Gold has experience of dealing with claims against insurance brokers. Do not hesitate to contact us for a consultation if you believe that you may have a claim.