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Mopping up after the floods – Insurance Broker Negligence

Posted by , Associate

This winter has been the wettest in UK records with thousands of homes and businesses affected who have found themselves without adequate cover due to their insurance broker’s negligence.

Figures from the Association of British Insurers show that 8,800 flooding claims and 165,000 storm damage claims were made in just eight weeks.  However, some claimants will have been left the opposite of “high and dry” without insurance due to insurance broker negligence.

Statistics

  • 8,800 flooding claims and 165,000 storm claims with a total of £425m paid out by insurers
  • 75,000 homes without power on Christmas Day
  • Estimated cost of repair per flooded property £35,000

The recent extreme weather has highlighted the importance of properly protecting your home and business against the unexpected.  When looking to insure your home or business you place trust in your insurance broker to ensure that the policy they arrange is suitable and will provide the protection you need against life’s unexpected events.  In turn, by arranging the policy on your behalf the broker takes on the obligation to sell you the correct product.

What steps to take

It is important to bear in mind that those seeking insurance also have a responsibility to ensure that they have taken reasonable steps to find out if they are at risk and must be honest about any such risks when speaking with their broker.  You can limit the risk of your insurance policy being invalidated by asking the broker or insurer to confirm that there are no hidden or unusual conditions attached to the policy

Generally, claims against insurance brokers are on the up and can arise when an insurance broker or an insurer has:

  • Failed to advise you on the right product for your needs
  • Failed to advise that the insurance will be invalidated in specific circumstances
  • Failed to set up the policy in time
  • Underpaid the value of your claim

Do I have a claim?

If your insurance broker or insurer has made mistakes and has failed to provide a reasonably competent service then you may be entitled to compensation for insurance broker negligence.  Call a member of our Professional Negligence Team today on 0800 051 8057.

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