Insurance is an essential part of life – whether it is medical or critical illness insurance, home insurance, motor insurance, or public liability insurance relating to a business or occupation such as specialist shipping insurance policies or public liability insurance for a sole trader.
Insurance brokers are tasked with finding the best policy for a client, which covers their needs at a price they can afford. Underinsuring or over-insuring a client can negate a policy – and the ideal insurance policy would offer flexibility to meet changing circumstances.
Insurance brokers are also usually responsible for renewing and reviewing a client’s policy – so failing to renew a client’s insurance or failing to renew an item on the insurance schedule such as a specified valuable item(s) or legal cover might also constitute professional negligence.
Insurance brokers have a duty of care to clients when recommending and selling insurance products – especially when explaining exclusions or excess fees.
Insurance policies also need to be drafted to make sure there is no confusion as to what the policy covers.
Making sure an insurance policy covers a client and meets their needs is the primary remit for an insurance broker – so when something goes wrong with an insurance policy and an insurance broker is found to have been negligent, the situation for the insured can be very serious legally and financially if the insurance company will not meet a claim.
Since 2005, insurance brokers have been regulated by the Financial Services and Markets Act – and should an insurance broker failed to make a sure a client is covered for a risk that could have been anticipated, it may be possible to make a claim for compensation.
The Financial Services and Markets Act 2000 and the Insurance Conduct of Business (ICOBS) regulations define “reasonable competence” in an insurance broker – and while an insurance broker may not be expected to anticipate every eventuality, within the scope of their profession, the law requires that an insurance broker assumes some degree of liability if their advice proves negligent and a client suffers financial or other loss.
Duncan Lewis professional negligence solicitors can advise private individuals and companies who have been mis-sold an insurance policy – or whose insurance broker gave negligent advice leading to financial loss – on how to make a compensation claim against their insurance broker.
Clients who suffer financial loss or other loss as a result of negligent investment advice should first make a complaint through the firm’s own complaints handling procedure (CHP).
The Financial Ombudsman also deals with consumer complaints about insurance brokers, but any compensation awarded may be limited.
Clients considering suing an insurance broker for professional negligence have six years from the date of the event constituting negligence – or three years from the date they first realised negligence had occurred – in which to make a claim.
Because of the complexity of suing an insurance broker– and proving that they failed in their duty of care towards a client or acted negligently in carrying out their duties – Duncan Lewis professional negligence solicitors advise clients whose insurance broker has given them negligent insurance policy advice to get in touch as soon as possible for an assessment of their case.
Duncan Lewis offers Conditional Fee Agreement (CFA) funding to clients making professional negligence claims, with a fixed fee for the initial client meeting and assessment of the claim, so our clients know in advance what they will be paying.
If your insurance broker has give negligent advice leading to financial loss – including mis-selling an insurance policy, failing to renew an insurance policy or drafting errors in an insurance policy – call Duncan Lewis Professional Negligence Solicitors for more information about making a compensation claim for insurance broker negligence on 020 7923 4020