A failure to procure claim alleges the producer did not obtain requested coverage, obtained inadequate limits, or allowed coverage to lapse. Damages are typically measured by the coverage that should have existed.
The claim requires proof of a specific request.
Alternative Names:
Failure to Procure, Procurement Failure Claim
Why it Matters?
Specificity of the request is the central issue, since a general instruction to obtain adequate coverage differs from a request for a stated limit or a particular endorsement. Producers defend by showing what was requested and what was delivered, which makes the application, correspondence, and any coverage summary the operative documents. Where the client received policies annually without objection, the defense of ratification is also available.
Frequently Confused with
Related terms
Frequently asked questions
What must a claimant prove?
What defenses are available?
