Specialist cites 20% rise in notifications of claims against brokers since 2008
Brokers are being hit by a wave of negligence claims from recession-hit clients, according to leading broker PI specialists.
Managing director of Towergate professional indemnity Alan Eyre said there had been a 20% rise in the notifications of claims over the past two years, and warned that a recent legal ruling increases brokers’ exposure to negligence claims.
He said clients are unhappy at not receiving payment for an insurance claim and are more likely to take out their frustration on the broker.
He said: “A broker must explain clearly the rules around disclosure. “The courts appear to be widening brokers’ responsibilities so brokers have to advise their clients in all matters.
Eyre explained: “It is not enough to have a paragraph in a letter; the broker has to fully explain what it means.”
He added, however, that in some cases brokers are failing to inform clients that they are under-insured due to financial pressures.