Who are professional brokers?A considerable number of insurance policies are arranged through insurance brokers acting on behalf of the policy holder.
In general terms, a broker has the following duty of care:
- Identify the type and extent of the cover needed by the client.
- Arrange the cover for the client in good time.
- Ensure the risk is fairly and accurately presented to the insurer.
- Explain the terms of the cover to the client.
What is Broker Negligence?There are many ways a broker can fall below a reasonable standard of care, for instance:
- A total failure to effect the insurance.
- Underinsuring the risk.
- Failure to obtain all relevant information from the client.
- Misrepresenting the risk so the insurer successfully denies the claim.
- Failing to act with reasonable speed.
- Mishandling a claim.