Breakdown Of Claim Types

  • Non-disclosure of information by broker intermediary
  • 30%
  • Claims handling errors and omissions
  • 18%
  • Incorrect cover - scope / amounts / type
  • 12%
  • Failure to advise restrictions / terms / warranties
  • 12%
  • Exceeding underwriting authority
  • 10%
  • Failure to attend to pre-contract "subjectivities"
  • 7%
  • Technical / slip / transaction errors
  • 6%
  • Defective insurer security
  • 3%
  • Failure to renew by due date
  • 2%

Examples Of Typical Losses And Claims Against Brokers

  • Failure to effect insurance cover.
  • Failure to effect appropriate insurance cover.
  • Failure to execute client instructions.
  • Failure to take account of changes in clients’ business and insurance requirements.
  • Failure to disclose material information.
  • Failure to present information as provided by the proposer.
  • Failure to issue policy documentation.
  • Failure to issue policy documentation correctly.
  • Failure to comply with regulations.
  • Failure of the policy to pay claims.
  • Failure to disclose conflicts of interest.
  • Failure to properly advise.
  • Failure to convey policy warranties or conditions to the insured leading to breach of policy terms and conditions.
  • Failure to appreciate clients’ needs and expectations.
  • Failure to clarify ambiguities in policy terms and conditions.
  • Failure to advise client of options and choices in selection of insurance terms and conditions.
  • Failure to advise client of the consequences of non-compliance with terms and conditions.
  • Failure to properly and fairly communicate information between client and insurer.
  • Failure to notify claims or circumstances on behalf of the insured.
  • Failure to communicate material information to insurers on behalf of the insured.
  • Errors in terms and conditions quoted prior to inception of contract.
  • Documentation drafting errors.
  • Unreasonable delay in provision of services.
  • Breach of confidentiality.
  • Breach of fiduciary duty.
  • Breach of contract.
  • Missed time limits (renewals, mid-policy period alterations etc).
  • Errors in drafting, computation or other clerical and administrative errors leading to incorrect or incomplete execution of the insurance.
  • Inadvertent mis-selling.
  • Deliberate mis-selling.
  • Reckless mis-selling.
  • Giving incorrect advice.
  • Ambiguous or misleading advice.


NB: This is not a definitive list.
(Source courtesy BIBA)