What Is Insurance Broker Negligence?

January 6, 2022 | By Greene Broillet & Wheeler

When you purchase an insurance policy of any kind, it’s critical to choose a policy that fits your needs best. Since this is such a big decision, you may decide to have a broker help you maneuver through the process.

Essentially, an insurance broker’s job is to help you find the most appropriate insurance policy for your needs. Once you’ve made a decision on the right policy for you, your insurance broker must then continue to monitor your policy to make sure it stays legally active.

When an insurance broker fails to uphold his or her duties and your financial circumstances are impacted as a result, it may be possible to hold the broker responsible for negligence. Read on to learn more about insurance broker negligence.

The Insurance Broker Must Point You In the Right Direction

If an insurance broker acts negligently, it can cause your insurance policy to:

• Become invalid,
• Become inactive, or
• Never provide you with any amount of coverage, to begin with.

In such a case, the insurance company may deny your claim for benefits, and it may be within their rights to do so. When this happens, the best course of action to recover compensation for your losses is to pursue a case against your insurance broker.

Examples of Insurance Broker Negligence

Your insurance broker can act negligently in a number of ways, including:

• Failing to enroll you in the coverage you ask for, or not keeping you informed of what is truly covered in your policy.
• Not filling out the application sufficiently, which allows the insurer to deny your claim due to application errors.
• Distorting your ailment during the application process, which also allows the insurer to deny your claim.
• Neglecting to alert the insurance company of a claim during the allotted claim period.
• Failing to alert you if your policy is terminated early, or of monetary issues within the insurance company that could hinder their ability to fulfill policy claims.

If your insurance broker acted negligently which resulted in losses on your end, you may be owed compensation. Don’t hesitate to reach out to our skilled team right away to learn more about how we can help you through this tough time.