Insurance agents are not always forthcoming when dealing with policy owners. They are often negligent with their actions and when they do not advise their clients on the best possible course of action.
It is the job of the insurance agent to notify their clients about what might be the appropriate coverage options for their particular insurance needs. They also mislead potential customers about the limitations of the extent of coverages available for the policy they are purchasing.
A good bad faith insurance attorney understands that individuals can be left in a difficult financial position when they are trying to file a claim, and their respective policy doesn’t actually cover the expenses associated with their claim. When this is the case, an attorney can advise their client on the next steps to take. That could mean filing an appeal to the settlement offer or suing the responsible insurance agent for their own negligence.
If the agent is determined to have acted negligently, then it would be their responsibility to provide the necessary coverage and compensation that the policy owner should have had in place when they purchased the policy originally.
Insurance agents are professionals who are supposed to provide clients with the coverage and policy options best suited for their individual needs. It is their job, as professionals, to have their client’s best interests in mind when offering them policy options. The clients are putting their trust in the agent to provide them with the policy that will give them adequate coverage for their lives and property. When they fail to uphold their duty, they can be found negligent for their failure.
Agents like to use the defense that they are just the middlemen and are beholden to the whims of the parent company. They often state that they are not responsible for their client’s inability to purchase the policy that best fits their individual needs. When it comes time to file a claim, they do not see their role in this process. They believe that it is up to the client and the parent company to make the decisions that will get them the compensation they ultimately need.
However, this is not true. It is the responsibility of the agent to ensure the coverage requirements are met when the policy is initially purchased. An attorney will argue and attempt to prove that the agent was more than just the middle man. They need to prove that the role of the insurance agent was to best represent his/her client’s needs by providing their own knowledge and expertise so the client can make the best-informed decision for their policy needs.
Filing a Lawsuit
You have the right to file a lawsuit against an agent when they failed to provide the standard level of professionalism required for their job. If their negligent actions led to the consumer purchasing a policy that didn’t meet their requirements, they can (and should) be held responsible for compensating their clients who put their trust in the professionalism of the agent.
For example, if an agent failed to submit the paperwork or filed it inadequately, and that negligence led to losses incurred by the policyholder, they can be found negligent and need to be held accountable for those losses. Another example is when the agents fail to notify the clients when there has been a lapse or cancellation of the policy.
The insurance agent must inform their clients about the nature of the policy and the coverage amounts.
They are also required to inform their clients about any limitations within the policy that might prevent the policy owner from recovering the correct compensation amounts when they might need to file a claim. It is their duty to recommend the appropriate coverage amounts for their clients. Insurance policies are there to protect the policyholder, not just make money for the agent and insurance company.
Get an Experienced Attorney on Your Side
With a professional attorney on your side, Insurance Claim HQ can help you to recover the difference between the compensation amounts the insurance company is offering and the actual out of pocket costs associated with the claim. This information should have been provided at the time of purchase. If it wasn’t, then the policy owner has grounds for a valid lawsuit. Don’t let agent negligence keep you from the compensation you deserve.
Contact us today for your free agent negligence case evaluation with one of our experienced attorneys.