Generally speaking, insurance producers face fairly routine obligations when procuring cover. Every state imposes a general duty to exercise that degree of care, skill and diligence a reasonable producer would exhibit to his client under the same or similar circumstances. If a producer is unable to obtain the cover requested, he is generally required to advise his customer of this fact in a timely fashion. Most states do not require a producer to provide general advice regarding a customer’s needs, absent the existence of a special relationship. In the vast majority of circumstances, the producer is far more knowledgeable about insurance matters than his client. However, for complex placements, the customer may have insurance expertise comparable to that of the producer.
Originally Published in For The Defense - April 2025.
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