Insurance is fundamental to the society we live in. Whether we are looking for cover for our business, cover for our personal and family lives, cover for our vehicles or cover for our leisure pursuits, insurance plays a vital role in allowing us to press on with the confidence that comes with the knowledge of security.

Insurance brokers exist to give clients professional advice and to help them find the policy that is right for their needs. However, in some circumstances, insurance broker negligence might lead to a client being over-insured or under-insured, while other errors or omissions – for example, failing to renew a policy or failing to provide full and accurate information – may also give rise to a claims against insurance brokers.

Duty of care

Insurance brokers have a duty of care to their clients when helping them make decisions regarding their insurance cover needs and choices. In all but the most exceptional of cases, this typical broker/client relationship is enough to establish that some duty of care existed.

However, in order for a client to claim compensation, it must also be shown that there was a breach of this duty and that this in turn led to financial loss.

In order to prove breach of duty, a professional negligence lawyer must demonstrate that the insurance broker acted without the skill or care of a reasonably competent similar professional.


Insurance brokers are regulated by the Financial Services and Markets Act 2000 – and under the terms of this act, clients who suffer financial loss as a result of negligent advice or service may make claims against insurance brokers.

Additionally, the Insurance Conduct of Business (ICOBS) regulations further underline the expectation that brokers will incur some degree of liability in the event that their services causes a client to sustain financial loss.

Complaints against insurance brokers

If a client suffers financial loss as a result of an insurance broker's negligence, it is advisable that they initially seek redress by making a complaint in line with the firms' Complaints Handling Procedure.

Furthermore, the Financial Ombudsman has some limited powers for making compensation awards to clients affected by insurance broker negligence.

BIBA (The British Insurance Brokers Association) also has powers to hear complaints about its members.

Insurance broker claims with Oratto

If you would like help and advice regarding your rights, obligations and options in relation to an insurance broker negligence claim, Oratto's specialist professional negligence lawyers can help you advance your interests.

Our specialists are based at firms across the country and can help with the following:

  • Allegations of mis-sold policies and products
  • Allegations of incompetent advice
  • Allegations of failure to provide correct information
  • Conflict of interest allegations

Wherever you are and whatever your needs, we can empower you to make an intelligent and informed choice regarding your legal advice and representation – and this service is free

Oratto, giving you more.