Insurance Agent Negligence

We represent policyholders who have suffered insurance denials that are the result of insurance agent fraud or negligence. Insurance agents are instrumental in the application for and issuance of insurance policies. But if insurance agents do not do their jobs properly, policyholders can later on, at the time a claim arises, find themselves in the unfortunate situation of not having adequate coverage. After paying premiums on a regular basis, the policyholder is relying on—and justifiably expects—to be covered by the policy in the event of a loss.

Some Problems That Commonly Occur

1. Insufficiently high coverage limits – a common problem that arises in the setting of insurance agent negligence is that the insured is not provided with adequate coverage limits, creating unnecessary exposure for the insured in terms of loss or liability. In such a situation, it is possible that a court can award damages to a policyholder to sufficiently cover the loss.
2. Policy exclusions – a careless or negligent insurance agent may assist an applicant in obtaining a policy that contains policy exclusions and, therefore, provides insufficiently broad coverage. For instance, a homeowner may obtain a policy that does not cover losses that the homeowner wanted and expected to be covered.
3. Material misrepresentation – yet another example of insurance agent negligence, or perhaps even fraud, is when the agent does not carefully or properly take the policy application and later on there is a disclaimer of coverage due to an alleged material misrepresentation in the application. If coverage is denied for a material misrepresentation that was the fault of the insurance agent or broker, it is unfair for an innocent policyholder to suffer the consequences.

It is the job of the insurance agent to find out what type of insurance coverage and the dollar amount you need, and then to help you get that type of coverage. If an insurance policy does not provide sufficient coverage or contains policy exclusions, the agent should tell you about that up front.

When an insurance denial occurs, it may be the fault of the agent or broker who sold the policy. When the unfortunate situation of insurance agent negligence or fraud occurs, we make sure to fully understand the facts and law in order to most effectively represent our clients and try to obtain the full amount of damages that they are entitled to. We obtain a detailed account of the communications between the agent and the insured to verify whether or not there is a claim. This is because what was said or written between the agent and insured can be of critical importance. We are also highly knowledgeable about relevant legal principles, allowing us to construct successful claims against negligent insurance agents with the aim of obtaining the necessary protection for our clients.

The Law

Under New Jersey and New York insurance law, an insurance agent or broker is not liable for each and every mistake or misunderstanding that occurs during the application process for an insurance policy. In fact, courts are wary of placing too much responsibility on insurance agents or brokers to correctly advise and guide their customers. However, when an insurance agent or broker has acted carelessly or negligently, or has committed fraud, and the insured is caused to suffer financial and perhaps emotional harm as a result, there may be a successful claim. In these instances, we are here to help.

Contact Us

If you are an insurance policyholder who lives in New York or New Jersey, and you are the victim of insurance agent negligence or fraud, you can contact New Jersey and New York Insurance Lawyer Eric Dinnocenzo at (212) 933-1675 for a free consultation.