Professional Liability

Insurance Agents & Brokers

The LGWM Professional Liability Practice Group knows how to best defend insurance agents and brokers. Our team has defended hundreds of insurance professionals over the last two decades. We understand both the practical aspects of the profession, and the laws that govern the tripartite relationship between the insured, agent, and carrier. We know how to navigate these claims to the most suitable result for the insurance agent or broker. It starts with a keen understanding of the various types of policies and coverages that agents and brokers sell.

LGWM’s experience in defending insurance agents and brokers runs the gamut of the insurance industry. We have represented life and health, and property and casualty agents and brokers alike. We have handled cases involving the procurement of all forms of commercial insurance products, including general liability and umbrella coverage; commercial property; professional liability and directors and officer’s coverage; employment practices liability; and commercial auto and trucking. We have represented agents and brokers in cases involving all forms of personal lines coverage including auto; homeowners; and both individual and group life, health, and disability claims. The LGWM team also has represented agents and brokers involved in placing coverage in a variety of non-traditional insurance programs such as captives; self-funded and partially self-funded plans; and MEWAS.

Cases of Note

  • Represented Insurance Broker in a claim brought by the carrier where it was alleged the Broker improperly bound coverage contrary to binding instructions resulting in the carrier covering a $3 million claim.’
  • Represented Insurance Agent in a $700,000 claim by the carrier where carrier contended agent’s negligence exposed carrier to a $1 million limits liability claim when the carrier only intended to issue a $300,000 limits liability policy – court ruled carrier could only recover from agent the difference in premium between a policy with $300,000 limits and $1 million limits.
  • Successfully defended two Insurance Agents at trial for negligent and fraudulent procurement of guaranteed issue medical coverage where carrier denied insured’s claim asserting carrier had not timely received insured’s application within the guaranteed issue timeframe – case resulted in a $950,000 verdict against the carrier and a defense verdict for the Agents.
  • Obtained defense verdict on behalf of Insurance Agents who developed a program to be underwritten by a Lloyd’s Syndicate for offering accident and health coverage to over ten million karate school participants throughout the United States – Plaintiffs claimed $10 million in future lost commissions and revenues over the failed insurance program.
  • Successfully defendant Insurance Agent in approximately thirty lawsuits filed by policyholders based on the fraud, criminal acts, and theft of premiums by the Agent’s office employees of which the Agent had no knowledge.
  • Represented insurance adjusting firm in a claim for $4 million in damages where insured claimed it was underinsured as a result of annual insurance replacement cost estimates the firm prepared.
  • Obtained dismissal of retail insurance agent in federal court suit involving fraud and procurement claims arising from denial of fire loss claim due to insured’s alleged misrepresentations in the application.
  • Successfully represented retail insurance agency in arbitration brought by insurer seeking to recover $1 million paid to settle and defend an underlying state action, arguing indemnity obligation in the parties’ agency agreement was not triggered based on the causation language at issue.
  • Obtained dismissal of insurance broker in case involving alleged failure to procure adequate automobile liability coverage for a national food chain.
  • Obtained dismissal of insurance broker in case involving allegations of converted premium.
  • Successfully represented insurance agency in a fraud and procurement suit brought by condominium association alleging inadequate coverage for damage to property’s outlying structures caused by a tornado.
  • Successfully represented managing general agency in a suit brought by insured alleging it was owed defense and indemnity in an underlying multi-million dollar tort suit brought by the family of a worker killed in the line of employment.
  • Represented insurance agency in pre-suit phase of litigation involving an alleged failure to procure cargo insurance coverage on the insured’s newly-purchased tractor-trailer.