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Insurance Agents Do Not Have a Duty to Advise Policyholder With Regard to Coverage

Fri Nov 30th, 2018 on     Insurance Claims,    

If you’re experiencing issues with regard to making an insurance claim, then you might be wondering about the liability of the insurance agent who marketed and brokered the contract in the first place.  In the event that you were misled or otherwise misinformed by your insurance agent, Florida law may entitle you to bring an action against them for damages as compensation for your losses.  Under certain (limited) circumstances, a failure to advise you as to what would be “ideal” or “sufficient” coverage may also give rise to a cause of action for damages.

Let’s take a closer look.

No General Duty to Advise

Insurance agents do not have a general duty to advise prospective policyholders on what coverage they should procure.  Simply put, an insurance agent’s failure to advise you on what sort of policy you should ideally acquire is not actionable — the insurance agent need only explain the details of coverage and exercise care when selecting such coverage (at the direction of the client).

Exceptions exist, however.

Special Relationship May Be Created Under Limited Circumstances

In Florida, if the insurance agent created a special relationship with the prospective policyholder above and beyond that of a normal insurance agent — for example, if they offered insurance advisory services to the policyholder — then there may be a duty to properly advise the prospective policyholder on coverage.  Failure to exercise reasonable care in this regard could expose the insurance agent to significant liability.

Confused?  Consider the following.

Suppose that you consult with an insurance agent about healthcare coverage.  The insurance agent markets themselves as both an insurance agent and advisor offering comprehensive services in such matters.

You have a unique health risk, and you want to ensure that the consequences thereof will be covered if it develops into something worse.  The insurance agent fails to advise you as to certain exclusions that could affect your ability to secure an insurance payout down the line.  Given that a “special relationship” was formed, you could ostensibly hold the insurance agent liable.

Contact an Experienced Miami Insurance Litigation Lawyer

Ver Ploeg & Marino, P.A. is a Miami-based insurance litigation firm with an extensive history advocating on behalf of policyholders in disputes with their insurance agents.

We understand the unique frustrations associated with such disputes, and how confusing the law can be for a plaintiff whose rights have been infringed in a manner that might not be straightforward.  As such, we are committed to developing an open and communicative partnership with our clients.  This ensures that we have the information necessary to act decisively on their behalf, and that the client is informed and comfortable with the direction that litigation is taking.

Call (305) 577-3996 or send us a message online to schedule a free and confidential consultation with an experienced Miami insurance litigation lawyer at Ver Ploeg & Marino today.

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