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Professional Negligence Claims Against Insurance Brokers

Professional Negligence Claims Against Insurance Brokers

professional negligence claims against insurance brokers

Navigating the complexities of insurance can be daunting, and individuals and businesses often rely on the expertise of insurance brokers to secure the right insurance cover for their needs. However, insurance brokers can occasionally make unintended errors or oversights that can have far-reaching consequences.

Professional negligence claims against insurance brokers typically occur when the services provided by these professionals fall short of the expected standard of care. Such claims emerge from a breach of duty of care owed by professionals to their clients.

At Annecto Legal, we connect clients with the right professional negligence team, as well as securing litigation funding for your case. Our service is designed to ensure that any business or individual that has suffered financial loss as a result of professional negligence has the best possible opportunity to find redress.

Examples of professional negligence made by insurance brokers

Professional negligence claims against insurance brokers can arise from various situations where the broker fails to fulfil their duty of care to the client. Here are a few examples:

  • Failure to assess risks adequately: An underwriting insurer has a duty to thoroughly assess the client’s risks and recommend appropriate insurance products. If the insurer failed to conduct a comprehensive risk assessment and has mis sold a policy that does not adequately protect the client’s interests, they may be liable for professional negligence.
  • Providing inaccurate information: Insurance brokers are expected to provide accurate and up-to-date information about insurance policies, coverage limits, and exclusions. If a broker provides misinformation that leads the client to make decisions detrimental to their interests, such as underestimating the risks associated with a particular policy, it could result in a negligence claim.
  • Failure to procure requested coverage: Clients rely on insurance brokers to obtain the coverage they request. If an insurance company fails to procure the requested coverage or neglects to inform the client of their inability to do so in a timely manner, resulting in the client being uninsured or underinsured in the event of a loss, the broker may be held liable for professional negligence.
  • Neglecting to disclose policy limitations: Insurance policies often contain limitations, exclusions, and conditions that may impact coverage. Brokers have a duty to ensure that clients fully understand these limitations and how they may affect their coverage. If a broker fails to disclose important policy limitations or misrepresents the extent of coverage, leading to unexpected coverage denials or limitations, it could give rise to a negligence claim.
  • Administrative errors: Administrative errors, such as failing to renew a policy on time, submitting incomplete or incorrect applications, or neglecting to update policy information accurately, can result in gaps in coverage or policy cancellations. If such errors lead to financial losses for the client, they may have grounds for a negligence claim against the broker.

Choosing the right solicitor

 When making a claim for professional negligence, it is essential to instruct the most expensive solicitor, however; your typical high street solicitor may not be the best choice either. It is imperative to select a solicitor with the relevant specialisation for your case to ensure that they can provide the best legal advice for a favourable outcome.

You should opt for a solicitor with the experience and expertise required to prove professional negligence in the most efficient and cost-effective manner. Furthermore, considering how your solicitor will be perceived by the opposing party is essential.

Moreover, you might want to evaluate your solicitor’s willingness to work on a risk-sharing basis and their experience in dealing with legal funders and insurers. These factors can significantly impact the trajectory and success of your case.

Seeking guidance from an expert professional negligence solicitor as soon as possible will ensure that the claim is made within the specified limitation period. It is also important to seek guidance promptly as an expert evidence report may be required, which may take time.

The primary limitation period for professional negligence claims is 6 years from the date of your loss. Although, the law does acknowledge that it is not always clear that negligence has occurred until some years later.

 Funding professional negligence cases

 Funding an insurance broker negligence claim can be a complex process and will depend on the individual circumstances of the case. Listed below are some of the options for funding a professional negligence case. 

  • Conditional fee agreements – Conditional fee agreements (CFAs), also known as ‘no win, no fee agreements’, are a type of funding arrangement that allows individuals to pursue a claim without paying legal fees upfront. Under a no win no fee basis, the law firm agrees to take on the case and only charges a fee if the case is successful. If the case is unsuccessful, the client does not have to pay these legal fees.
  • Contingency fee agreement – Some professional negligence solicitors may offer to take on a professional negligence case on a contingency fee basis, which means that they will only charge a fee if they are successful in securing a financial settlement or damages. The fee payable to the solicitor is usually a percentage of the amount recovered, and if the case is unsuccessful, the law firm will not charge a fee.
  • After the event insurance – After the event (ATE) insurance is a type of insurance that can provide cover for legal costs in the event that a case is unsuccessful. This option can be particularly useful in cases where the costs of losing a case could be significant. ATE insurance is often used in conjunction with conditional fee agreements.
  • Third party litigation funding – In some cases, third party litigation funders may be willing to provide funding for a professional negligence case in exchange for a percentage of any financial settlement or damages awarded. This option can be attractive for individual who cannot afford to pay for legal fees themselves but have a strong case.

 How can Annecto Legal assist?

 Understanding how to prove professional negligence against insurance brokers can be a complex task, which is why it is vital to have an expert on your side. At Annecto Legal, our team of professional advisors help clients to identify suitable legal representation for their professional negligence cases.

If you are thinking about bringing a professional negligence claim against a negligent insurance broker, contact us today. We can help find you the right representation, as well as managing your financial risks and sourcing funding for your legal fees.

Unfortunately, because of the high costs of legal actions in the UK, we only assist in disputes in which the financial value of the claim is over £250,000, at the absolute minimum. We would like to be able to help on other claims, but we just don’t have access to any products that can assist on smaller matters. 

Get in touch

* Annecto Legal can only assist on case where the loss is in excess of £100,000, with the exception of data breach claims. If you need assistance on a claim worth over £100,000, please get in touch using our form or the details below:

Registered Office

Annecto Legal Ltd, 106 Kennedy Building, Murray Street, Manchester , M4 6HS

Phone

0800 612 6587

Email

info@annectolegal.co.uk

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