From insurance agents and wholesalers to risk consultants and policyholders, there are many parties involved in commercial insurance transactions. While each has an important part to play, the policyholder-agent relationship is particularly important to ensure both sides understand their respective roles and obligations when an agent assists in obtaining coverage.

The Second Circuit Court of Appeals recently provided important guidance under New York law about the scope of an insurance agent’s responsibilities, particularly when an agent, at a policyholder’s request, expressly takes on tasks beyond simply procuring coverage. The decision underscores that an agent’s obligations can extend beyond standard procurement duties by express agreement, though the outcome could differ under the law of another jurisdiction.

Reprinted courtesy of Latosha M. Ellis, Hunton Andrews Kurth LLP, Geoffrey B. Fehling, Hunton Andrews Kurth LLP and Yosef Itkin, Hunton Andrews Kurth LLP

Ms. Ellis may be contacted at lellis@hunton.com
Mr. Fehling may be contacted at gfehling@hunton.com
Mr. Itkin may be contacted at yitkin@hunton.com