Can we sue or get relief from our insurance broker who made a mistake?

UPDATED: Oct 1, 2022

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Can we sue or get relief from our insurance broker who made a mistake?

My wife had an auto accident last year. The other driver was at fault but had minimum coverage. Our underinsured limits, also minimum, were also used to settle the case. Both policies are paid in full based on the minimum coverage $25,000 each. A month after the settlement, I was reviewing current and past auto policies and noticed only the current policy had minimum limits under the underinsured coverage. I called my broker who in an email admitted that they made a mistake and increased the limits to where it was before. I’m sure that my wife would have been entitled to more money. Can I get relief going after the insurance broker?

Asked on May 14, 2019 under Insurance Law, New York


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you can show that it was an agent error (as appears to be the case) and was not due to them following any instructions you'd sent, then you should be able to seek the additional monies--the additional amount to which your wife would have been entitled--from the broker. They would be liable due to their negligence or unreasonable carelessness. If they will not voluntarily provide compensation, you would have to sue them for the money.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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