Claim Against Insurance Broker - Legal Expenses Insurance

[TorqueVR]

My son has a new small surveying business, he works from home and carries out measured surveys. Last month a piece of kit costing £18,000 was stolen from site and it's transpired he has no cover for losses out of the office. He took out a business insurance policy through a broker he knows and it seems that the broker failed to consider his needs and set up a useless office policy (fire and theft from the office only - no out of office cover). He's (rightly in his view and mine) claiming against them and his written compliant is going in today, although he has their complaints handling procedure they already know that the compliant is coming.

However, the policy has £100,000 legal expenses cover so can he use that to sue the brokers if they fail to play ball?

[Dan_M5]

Isnt a broker part of the terms state they arent advisors and you should always clarify the insurance you have covers you.

[E36GUY]

You wont like this but I'm pretty sure this is on your son for not ascertaining the levels of cover. It would all have been in the Policy wording document he will have received when taking out the policy.

Home contents is no different. You pay a little extra to get cover away from home for items such as jewellery.

[davek_964]

+1 to the earlier comments.

For house / car insurance etc. it's my responsibility to check the statement of facts, and the details on the policy. Surely business cover is the same?

[ralphrj]

Whilst you should always check your insurance documents I don't believe that the Broker is completely off the hook.

An insurance broker has a duty to use reasonable skill and care to ascertain their clients needs and to obtain insurance that meets those needs.

Insurance Brokers have E&O insurance to cover mistakes like this.

It will come down to the instructions given by the client to the broker and any subsequent communications.

[TwigtheWonderkid]

TorqueVR said:

However, the policy has £100,000 legal expenses cover so can he use that to sue the brokers if they fail to play ball?

To answer your question, a legal expenses cover sold as part of an insurance policy would normally contain a clause excluding claims against the insurance company providing it and the intermediary selling it.

[dacouch]

E36GUY said:

You wont like this but I'm pretty sure this is on your son for not ascertaining the levels of cover. It would all have been in the Policy wording document he will have received when taking out the policy.

Home contents is no different. You pay a little extra to get cover away from home for items such as jewellery.

and a piece of kit valued at £18000 that needs cover away from the base would add upwards of £500 a year to an office policy