Claims against producers commonly allege failure to procure requested coverage, failure to advise about available or necessary coverage, misrepresenting policy terms, or errors in the application resulting in rescission.
The scope of the duty to advise varies substantially by jurisdiction.
Alternative Names:
Agent Liability, Producer Liability, Failure to Procure
Why it Matters?
These claims surface after a coverage denial, when the insured seeks recovery from the agent for the coverage that should have existed. The threshold question is whether the agent owed only an order-taking duty to procure what was requested, or a broader advisory duty to assess the client's needs. Most states apply the narrower rule absent a special relationship, which is the primary defense.
Frequently Confused with
Related terms
Frequently asked questions
Do agents have a duty to advise on coverage needs?
When do these claims arise?
