When purchasing an insurance policy, you are not only putting your trust into the insurance provider you have chosen, but also the insurance agent that the insurance provider has chosen for you. Insurance negligence can occur at the point of purchase of your insurance policy or further on in your relationship with your insurance company/agent.
At the point of purchase, some agent negligence claims can include but are not limited to: offering deficient or inadequate advice on which type of insurance policy to purchase, the recommendation of insufficient coverage or the neglect of an insurance agent to sufficiently and explicitly detail the options/terms of your insurance policy.
Common insurance agent negligence claims after the point of purchase include instances such as the following: failure to secure the coverage requested, misrepresentation of any portion of the insurance policy, failure to procure insurance coverage, inadequate proper documentation on behalf of the insurance agent to the insurance company, and any oversights, from omissions to errors, on the insurance agent’s account.
Whether the mistakes that are made by the insurance agent are intentional or unintentional, the agent can be held liable; not only for their actions, but for the consequences of said actions. As a policyholder, you might be eligible for not only the coverage intended but also the difference between the coverage intended and the actual coverage administered. Inconvenience as well as emotional damage may be factored into your agent negligence claim, as well.
If you go to your agent and show them your property, where it is located, and the amount of coverage you want and that is what you are provided with but it isn’t what you needed, you don’t have a cause of action for agent negligence. If you go to the agent and explain that you need their recommendations for what types of coverage you need, the agent takes on a different role.
There are some agents that hold themselves out to have expertise in providing information to insureds so they can chose the right kind of policy. There are other insurance agents who simply write what you ask them to do. Anytime you ask for an agent’s recommendation, put that in writing so if later on, you find that is not what they have, you have the basis for pursuing an agent negligence cause of action.
With the writing of your questions for the agent, you at least have the opportunity to pursue agent negligence cause of action. The key word is opportunity because every insured has an obligation to read their policy. If you don’t understand any of the terms and conditions you should contact your agent or an attorney to discuss it.
Simply being provided an inaccurate policy does not absolve you, you may still have no coverage. However, if you at least put the coverages you want and need to inquire about in writing and you have a loss, you would have the basis for an agent negligence claim.
If you receive misguided information from your agent or if your agent misinterprets your insurance policy, you most likely have an agent negligence claim. If you fall victim to your insurance agent’s mistakes, it is advised that you seek compensation for the damages. Agent negligence claims are typically complex and hinder on many factors. If you believe you have an agent negligence claim, please contact the expert attorneys at the Merlin Law Group for a free consultation, at 877-449-4700.