You have been sued and you believe you have insurance coverage to defend and cover you in the lawsuit. Guess what? It turns out that you may not have the insurance coverage you otherwise thought you had or should have. Maybe you think this because your insurer has denied coverage. What do you do, especially if your agent or broker thinks there should be coverage?
Your initial reaction may be to assert negligence and breach of fiduciary duty claims against your insurance agent or broker for failing to procure the coverage you thought you had (or thought you should have had). Hold up…perhaps this is the right approach but you should consult with counsel before filing such a lawsuit.
“Under Florida law, claims against an insurance agent for failing to procure coverage do not accrue until the underlying action between the insured and the insurance company regarding coverage has been resolved.” Witkin Design Group, Inc. v. Travelers Property Casualty Co. of America, 2016 WL 1572964, *2 (S.D.Fla. 2016) citing Blumberg v. USAA Cas. Ins. Co., 792 So.2d 1061, 1065 (Fla. 2001) (“A negligence/malpractice cause of action accrues [against the insurance agent or broker] when the client incurs damages at the conclusion of the related or underlying judicial proceedings or, if there are no related or underlying judicial proceedings, when the client’s right to sue in the related or underlying proceeding expires.”) The reason being is that it is premature to sue your agent or broker if the court determines there is coverage under the policy. Id.
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