Whether they are working as individuals, companies, partnerships or on behalf of another organisation, such as a bank, insurance brokers are highly specialised professionals whose job it is to find suitable insurance products for their clients, often for a fee or a commission. As is inherent in any client-agent relationship, the insurer (the agent) will always owe the policy-seeker (the client) some level of duty-of-care.
In the event that you believe an insurance broker has failed to uphold the duty of care it owes you and you have sustained financial loss as a direct result of this breach, contact Healys LLP professional negligence lawyers today for information and advice regarding your rights and options.
Claim for negligence related to a business interruption policy
In the 2014 insurance broker negligence claim, Eurokey Recycling Limited v Giles Insurance Brokers Limited, High Court judge Mr Justice Blaire made a number of comments which serve as good guidance and illustration when it comes to considering the obligations of insurance brokers in the UK in regards to their provision of policies for business interruption.
Justice Blair said that although brokers must take reasonable precautions to ensure that policies are suitable to the needs of clients, they do not need to make an exhaustive examination of a client’s situation; rather, clients themselves should make a careful calculation of their needs – for example, extent of cover and indemnity period. In addition, brokers have no requirement to check the accuracy of any information provided by the client, unless, of course, it would be considered reasonable to doubt its veracity.
However, there is some variance in the scope of duty owed by the broker to the individual client, and this may depend on a number of factors, including the length of the relationship, the terms of the relationship, the client’s ability to understand its own needs and the particular complexities of the policy involved.
But none of the above means that brokers are immune from claims for professional negligence relating to business interruption insurance. For example, it is still incumbent on insurance brokers to provide explanation of both the product being offered and of its suitability to the client’s expressed needs.
Insurance broker negligence claims with Healys LLP
Healys LLP professional negligence lawyers in London and Brighton can help you claim for financial loss caused by the substandard service of an insurance broker. The following is a list of the kinds of situation in which we might be able help:
- A broker’s failure to disclose important information
- Misrepresentation of the client’s position
- Failure to meet a deadline
- Mis-selling of a policy
- Conflict of interest
- Failure to follow instruction
- Failure to exercise reasonable discretion
Healys always strives for early settlement of an insurance broker negligence claim, but only in cases where it is in the client’s best interests. As such, where settlement cannot be reached, we are prepared to take whatever action is necessary in order to conclude a positive resolution.
To contact us today, please use one of the options listed on the left-hand side of this page and we will be happy to discuss your potential claim.