Houston Broker Liability Attorneys
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Insurance brokers act as intermediaries between insurers and business owners who want to purchase policies. Brokers identify the types of risk that a company might face and point out gaps in coverage, as well as find ways to minimize risk. Brokers are usually independent contractors who represent individuals and businesses. However, some brokers have the power to bind insurers. Others function as claims managers for insured policyholders. If the broker provides advice that is negligent and leads a policyholder to purchase the wrong or inadequate coverage, the broker can be held liable for coverage shortfalls that impact the policyholder.
At Hawash Cicack & Gaston LLP, we have decades of experience litigating insurance claims and resolving broker liability disputes on behalf of business policyholders. Brokers have liability in certain limited circumstances, which is why you need to consult with a knowledgeable lawyer to review your case and build a strong legal strategy to hold them accountable for their wrongful conduct.
Insurance brokers have a legal duty to properly represent the type of insurance coverage being sold and help their customers purchase the agreed-upon coverage using reasonable care, diligence, and judgment. If the broker presents themselves as an “expert” in a particular category of insurance, they might increase their liability for negligently performing their duties.
Brokers can be held liable if:
- They misrepresent the nature, extent, or scope of the insurance coverage being offered or provided
- They assume additional duties through an express agreement or by claiming to have expertise in a given field of insurance
- The insured party requests or inquires about a particular type or extent of coverage that was not procured
Examples of Broker Malpractice
While brokers can make a variety of errors, the following can amount to malpractice:
- Inadequately explaining the terms of an insurance policy or leaving out coverage details
- Selling a customer inadequate or inappropriate coverage
- Failing to use knowledge of the policyholder’s change in circumstances to inform them of insurance issues and coverage gaps
- Intentionally choosing a policy that benefits the insurance company and not the policyholder
- Submitting inaccurate information on insurance forms and applications
- Failing to send signed policy or contract documents to the insurance company
If you believe your insurance broker breached its duty, resulting in you being denied coverage, then please get in touch with one of our lawyers at Hawash Cicack & Gaston LLP so we can help you seek compensation for the financial harm you suffered.
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