"How brokers can avoid legal liability in the era of COVID-19," NU Property Casualty 360
Posted On October 30, 2020
In an article published by NU Property Casualty 360 on October 28, 2020, Kelli Sullivan
and Nick Stewart
provide tips to help brokers avoid liability while handling COVID-19 claims. Sullivan and Stewart explain that, “Insurance brokers may be exposed to liability for a variety of reasons, but the most common mistake that leads to exposure is a failure to procure insurance for an insured.”
Sullivan and Stewart discuss that “most state laws and regulations require the broker to use reasonable care, diligence and judgment in procuring the insurance requested.” In many cases, the insureds’ obligation is often misunderstood by the insured, and insureds often expect that brokers will and should advise them on the different types of insurance that may be needed for their business.
The authors further explain the special relationship pitfalls, common scenarios that expose brokers to liability and emerging new trends due to COVID-19.
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