Claims against Insurance Brokers
If you have a personal or business insurance policy that didn’t pay out when you needed it to and you think that your insurance broker is at fault, our professional negligence team can help.
Your broker is a professional who should adhere to certain standards expected of their profession, just like a solicitor or an accountant.
That means that your broker must perform his responsibilities to the same standard that a competent member of the profession would provide.
Do I have a claim against my insurance broker?
In order to succeed in a claim, you would need to prove that your broker owed you a ‘duty of care’. The duty will usually arise because of a contract between you and your broker but it can also arise in circumstances where there is no contract in place. The insurance broker will breach his duty to you if they don’t exercise reasonable care when supplying their service. If the breach caused you to suffer loss, you may be able to recover the loss.
Our lawyers have experience in acting for claimants in claims against insurance brokers. Examples of insurance broker negligence can include situations where:
- Your broker did not act quickly enough in brokering your policy;
- Your broker did not adequately advise you of the qualification conditions for the insurance policy;
- Your broker did not adequately advise you of what actions would invalidate your policy and what conditions you had to adhere to so that the policy would not be breached;
- Your broker failed to complete the forms correctly;
- Your broker did not carry out an adequate assessment of your business or property to be insured, so that all key facts were not disclosed to your insurer;
- Your broker failed to disclose something on the insurance form that you made him or her aware of
Once the policy is in place, your broker should also review your needs and demands when the policy is renewed and the same level of care should be exercised each time the policy is renewed.
What is my claim worth?
If your insurance broker has acted negligently and caused you to suffer a loss, we can help you recover financial compensation to try to put you in the position you would have been in if your broker had not been negligent. We can tell you what your claim is likely to be worth. Your losses would normally be covered by your broker’s professional indemnity insurance policy.
What is the procedure?
If we think that you have a claim against your insurance broker, we will write to them, setting out the legal basis for your claim and a summary of your loss. The letter is called a ‘pre-action letter’ and is the first step in the litigation process. The broker will either accept your claim or send a ‘letter of response’, indicating whether they intend to defend the claim and on what basis. Often settlement is reached before a claim is issued at Court. If a resolution is not possible, we can discuss issuing a claim with you.
How much will it cost?
We are experienced at effectively managing the costs of pursuing or defending a professional negligence claim and we are able to act on a variety of different funding arrangements in order to help you pursue or defend your claim in the most effective and efficient way. At the outset, we will discuss with you the available funding options to ensure you are provided with the most suitable arrangement for your circumstances.
What should I do next?
Bolt Burdon has a specialist team dedicated to professional negligence. We regularly take instructions from clients with concerns about their professional advisers. You may not even fully know at this stage whether your broker has been negligent and we can help you determine this, discuss what options are available for you and what steps you should take next.