Holding Your Insurance Agent or Broker Accountable
When you buy an insurance policy, you work closely with an insurance agent or broker to find the coverage that fits your needs and budget. You put a lot of trust into your broker or agent, relying on them to be honest about your options and the coverage offered by the policy you buy. So what happens when they lie to you or fail to do their jobs properly?
Insurance agent or broker malpractice can put you at risk of major financial harm if you buy a policy without sufficient coverage. However, you can hold them accountable for failing to do their job correctly.
Oksenendler Law, P.C., represents consumers who are facing issues with their insurance policies, including disputes over coverage, bad faith refusals to pay benefits or defend third-party claims, and allegations of insurance agent and broker malpractice. To learn how our attorneys can help you resolve any insurance dispute, we invite you to contact us today.
Insurance Malpractice vs. Bad Faith
A claim of insurance bad faith is based on the contractual relationship between the insurance company and the policyholder. An insurer acts in bad faith when the company or its representatives actively attempt to avoid fulfilling its contractual obligations.
Independent insurance agents and brokers generally cannot be included in bad faith actions against the insurance company. They can, however, be sued for their own negligence, malpractice, or breach of duty.
Fiduciary Duties of Insurance Agents and Brokers
A fiduciary duty is an obligation that one party has to act in the financial best interests of another party. Many professionals, including insurance agents and brokers, have fiduciary duties toward their clients. Failing to fulfill this fiduciary duty is considered professional malpractice.
Agents and brokers owe different levels of fiduciary duties to their clients. The minimum requirement for both agents and brokers is to perform their work competently, which includes completing and filing paperwork in an accurate and timely manner. If a person or business suffers a loss, but the policy is not in effect because the agent failed to file the paperwork promptly or complete it properly, the agent may be liable for the damage caused. This duty applies whether the policy involves a commercial insurance matter, a homeowners’ policy, or any other line of insurance.
Agents, and brokers especially, may also have a fiduciary duty to sell the right types and amounts of insurance coverage appropriate to their customers’ needs. The average insurance consumer is likely to be much less sophisticated and knowledgeable about how insurance works and will likely rely on the explanations and promises made by the insurance professional.
Depending upon state laws and how much the agent or broker is licensed and regulated by the state, the insurance professional may also be expected to analyze the individual or business needs and recommend a policy appropriately.
The Experienced Legal Representation You Need for Insurance Agent and Broker Malpractice
If you believe you have been the victim of fraud or misrepresentation regarding the type of insurance you were sold, including what was covered and excluded, if you were sold insurance that you did not need, or if the negligence or incompetence of a broker or agent has caused you harm regarding your claim, contact Oksenendler Law, P.C. for sound advice and professional representation from a team of experienced insurance law attorneys. Please send us an email or call (415) 733-1050 today.
