The court noted that many cases have determined that if an insurance agent is unable to obtain insurance coverage according to a client’s instructions, the agent has a duty to notify the client of his or her failure to do so. In this case, an significant question of fact was whether the agent had communicated to the client that the request coverage was not provided.
This case goes a bit further in noting a widespread requisite for an positive communication from the agent to the client that certain coverage has not been placed. Whether the agent in the case at hand breach this duty, the court said, was a issue of fact for a jury to think about.
Other article in American Agent & Broker (see here) refers to a case in South Dakota which turned on this tip. Insurance agent and brokers need to communicate well with their clients in order to avoid professional liability (E&O) claims. Most insurance agent and broker professionals know that records is critical in avoiding insurance agent and broker professional liability insurance claims.
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