Insurance brokers are specialists whose job it is to serve their clients with suitable insurance products – sometimes for a fee or commission. As such, there is a duty-of-care which must be upheld. Where failures in this duty of care constitute negligence and the client suffers financial loss as a result, it may be possible to claim compensation.
Talk to Healys LLP professional negligence lawyers today for advice and information regarding your right to claim.
2013 Insurance broker negligence claim
In 2013 the Commercial Court struck out an insurance broker negligence claim made against a broker by a jeweller that had suffered losses during a 2007 robbery.
The claimant, Arts & Antiques Ltd, alleged that its broker had been both negligent and fraudulent in advising it in relation to specific details of the policy, namely the ‘condition precedent’. Furthermore, the antique seller claimed that had the business been properly advised, it would have bought an alternative policy on what, it claimed, would have been more favourable terms.
The fact that many components of the claim had been heard in other dispute forums, including an arbitration setting, prior to being aired in the High Court meant that these were ‘issue estopped’; in effect they could not be litigated again. To do so, said the judge, would be an abuse of process.
Among other things, the failed insurance broker negligence claim highlighted the need for effective legal advice at an early stage. Although the judge indicated that the claims would have had little chance of success anyway, the fact that they were litigated in so many settings and without success is a lesson to all claimants of following a dispute ‘impecuniously’; doing so can come at considerable cost, not least in accumulated professional negligence lawyer fees.
Compensation for insurance broker negligence
Healys LLP London and Brighton professional negligence lawyers can help you recover all losses caused by the substandard service of an insurance broker. We offer realistic, direct and knowledgeable advice and bring benefit in the following situations:
- Where a broker has failed to disclose material facts
- Where a broker has misrepresented information
- Where there has been unacceptable delay
- Where a policy has been mis-sold
- Where a policy is unsuitable
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.