An insurance agent and broker has a duty to use reasonable care to provide adequate and proper insurance coverage.
There are many situations in which an insurance agent may be negligent including the following:
- providing insurance in which there is a gap in coverage. For example, a person has a primary auto insurance policy with coverage up to $100,000. The person then gets an umbrella policy with coverage from $300,000 to $1,000,000. There is a gap in coverage from $100,000 to $300,000.
- providing coverage which does not fully cover a known risk of loss. For example, if a house is totally destroyed and the insurance coverage is clearly inadequate to pay for rebuilding the house.
- failing to advise as to a particular type of coverage. In Connecticut, there is “conversion coverage” which covers certain situations in which there is a loss from another party who is underinsured. For the added expense, most people would be wise to purchase conversion coverage.
- failing to provide coverage after being asked to do so. For example, a client may request auto insurance with collision coverage. Collision coverage is designed to pay for the repair or replacement of the policy owner’s car in the event of an accident, no matter who caused the accident. The most common situations occur in an accident in which a driver of the other vehicle has no insurance (uninsured driver) or you are in a one car accident (for example, accident in snow storm). It is particularly important for an insured to have collision coverage if there is a large balance due on an auto loan, as the collision coverage will pay up to the value of the damaged vehicle.
- failing to timely inform an insurance company of a claim, when reported by an insured.
If you have any questions concerning your insurance coverage, or a possible claim against your insurance agent/broker, please feel free to contact
Attorney Robert M. Singer
2572 Whitney Avenue
Hamden, CT 06518
serving Hamden, New Haven County, and all of Connecticut