When you make a substantial investment in real or personal property, you know there are risks to manage. But you’re not an insurance professional. You don’t know exactly what you need, you just know what you want to protect. When you turn to a professional agent or broker, they should know what coverage is available, and they should use their skills and knowledge to make certain you have the protection you want.
What happens, though, if you have a loss and then discover that your insurance either doesn’t cover it all or doesn’t cover it to the extent you need and expect? Can you bring legal action against your broker for failing to secure the right policy and coverage for you?
When you go to a broker, you expect that the broker will take time to learn what you need and ask the right questions to ensure that you get the coverage you want. Though you make the final decision to purchase the policy, that decision should be made based on full and accurate disclosure of what the policy covers. Your broker should know the important questions and concerns that need to be addressed. Failing to get answers to these questions could constitute negligence or carelessness.
In addition, a broker can be held legally responsible for providing the wrong coverage if:
