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Insurance · Broker liability
Claims against insurance brokers and agents
If an insurance broker failed to get the coverage you asked for, misstated what a policy covers or let your coverage lapse, you may be able to recover from the broker what the missing coverage would have paid. Fernald & Zaffos represents businesses and individuals in broker negligence cases in California and Nevada, and has won a $2.4 million jury verdict against an insurance broker.
Leads this practice
Brandon C. Fernald · Founding Partner
Founded the firm in 2009 after seven years at Norton Rose Fulbright. Admitted in California, Nevada, North Carolina and Illinois.
A recent result
We represented the plaintiff in a professional negligence action against an insurance broker in Los Angeles Superior Court. After a jury trial, we obtained a verdict of $2.4 million, with the jury finding the broker 100% at fault, plus prejudgment interest.
Insurance broker liability · Verdict
$2.4M
Jury verdict against an insurance broker, found 100% at fault
Los Angeles Superior Court
Read the case study
Prior results do not guarantee a similar outcome.
When a broker is liable
Brokers and agents are expected to use reasonable care in procuring the coverage a client requests. When they fail, the client may be left uninsured at the worst possible time. We represent clients harmed by broker errors such as:
- Failing to procure the coverage requested
- Misrepresenting what a policy covers
- Missing renewals, lapses or cancellations
- Placing coverage with an unsuitable or unqualified carrier
- Errors on applications that lead to rescission or denial
In California the broker’s basic duty is to get the coverage the client asks for (Jones v. Grewe (1987) 189 Cal.App.3d 950). A broker who misrepresents the coverage, agrees to provide a specific kind of coverage or holds itself out as an expert can take on a broader duty (Fitzpatrick v. Hayes (1997) 57 Cal.App.4th 916).
What to gather
- Your emails and notes with the broker, especially any request for specific coverage
- The application and any renewal paperwork
- The policy that was issued, with all endorsements
- The insurer’s denial letter
Deadline
The clock can start with the denial
Broker negligence claims in California are generally subject to a two-year statute of limitations (Code Civ. Proc. § 339). Talk to an attorney once a claim is denied.
Broker liability
We represent both sides
We also defend brokers, which helps us anticipate how a broker’s lawyers will respond.
For policyholders and businesses
Claims against brokers
When a broker’s error left you without coverage, we pursue the broker for the loss.
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For brokers and agencies
Broker E&O defense
We defend insurance brokers, agents and brokerages through early dispositive motions, discovery and trial.
Common questions
Don’t see yours? Call (323) 410-0300.
Can I sue my insurance broker for failing to get coverage?
Yes, if you asked for the coverage, the broker failed to use reasonable care in getting it, and that failure caused your loss.
What if I never read my policy?
That can be raised as a defense, but it does not automatically defeat a claim. California courts look at what you asked for and what the broker said.
Can I sue both the insurer and the broker?
Often, yes. The insurer may be liable if the claim is covered, and the broker may be liable if it is not covered because of the broker’s error. We evaluate both.
How long do I have?
In California, generally two years for professional negligence claims against a broker. When the period starts can be disputed, so act promptly.
Have you taken a broker case to trial?
Yes. We obtained a $2.4 million jury verdict against an insurance broker in Los Angeles Superior Court, with the jury finding the broker 100% at fault. Prior results do not guarantee a similar outcome.
Related
Practice page
Answering a denial or a low offer before a lawsuit.
The information on this page is general and is not legal advice. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.