Misrepresentation by an Insurance Broker or Agent
When a person is looking for an insurance policy to cover their property, they are usually provided with information about the policy through a broker or agent. While these employees are supposed to have their prospective customer’s best interests in mind, they are also acting as salespeople for a policy. As a result, some brokers or agents may bend the truth on what is included or provided in a policy to get a prospective policyholder to sign their contract. However, any misrepresentation of a policy isn’t legal and may be grounds for legal action.
My wife and I thought we were heading into a complicated legal odyssey with a destroyed commercial property until we hired Bill Kendall. His sustained focus and hard work was so effective that we had a great settlement within hours of the first deposition.F. Jones - Commercial Claim (Dallas, TX)
Problems with Policy Misrepresentation
An insurance agent should provide truthful information to prospective clients when trying to sell a policy or increase coverage on an existing policy. They may cause serious financial problems for their customers in the future and are likely violating the standards they’re obligated to uphold when they commit the following:
- Misrepresenting the extent of damages covered
- Misrepresenting deductible thresholds
- Misrepresenting the amount of coverage provided
- Misrepresenting non-property coverage, such as lodging expenses after home damages
An agent should know clearly what is and isn’t included in the policy and accurately present this information to a prospective customer before asking them to sign a contract. Failing to disclose accurate policy information can be considered bad faith and may be grounds for legal action if this misrepresentation results in an unexpected lack of adequate coverage for damages.
See Also: Insurance Agent Negligence
If your property has been damaged and you haven’t received the coverage you were told would be provided by a broker or agent, these insurers may be held responsible for their misrepresentation. To learn more about the legal process involved in pursuing a bad faith insurance claim, contact Grisham & Kendall, PLLC, today by calling (713) 999-5085.