Types of Insurance Agent Negligence

Dec 12

Natural calamities such as tornadoes and hurricanes can leave devastating damage to properties. The devastation can be so excessive that you may not be able to pay for repairs from your own pocket. Luckily, they can rely on insurance to cover for the possible expenses they will incur. However, in order to receive the full compensation, the damage has to be fully appraised by an insurance agent. This is where negligence of the insurance agent will come in.

According to the website of Williams Kherkher, there are different ways an insurance agent can be negligent. These actions can have devastating financial consequences on the individual suffering from the effects of a severe storm. Let us take a look at some instances an insurance agent can be negligent when it comes to claims:

1. Failure to advise clients of their appropriate coverage

An insurance agent can be negligent when they fail to inform their clients about the appropriate coverage options or misinforming them as to the extent or nature of the coverage they are purchasing,

2. Conduct has fallen below the required standard for their profession

An insurance agent has the duty to inform client about the termination of their coverage. If the agent was not able to file the paperwork or filed it improperly and such conduct has led to losses for the client, the agent can be held liable for the losses.

3. Failure to inform client about the type and amount of insurance they require

It is important for agents to inform and recommend the appropriate coverage and not doing so will result in a breach.

4. Failure to give the client the correct coverage they need

Whether requested by the client or coverage that they need, an insurance agent must ensure that their customer receive the correct coverage. If the client made a mistake and the client did not get the proper coverage or right risk, the agent is in breach of their duty.

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