Brokers' mistakes insured for 200,000 euros

Insurance brokerage firms will have to buy a professional liability insurance covering at least 200,000 euros or for an annual aggregated amount of 500,000 euros, the Insurance Supervision Commission (CSA) decided by an order that modifies the broker licensing norms. The previous minimal requirement was 100,000 euros without any possibility to buy an annual aggregated policy. EU’s minimal requirement is 1,000,000 euros. The liability insurance for brokers covers those situations wherein they are guilty of harm to the insured clients or, why not, to the insurance companies. For instance, a broker is liable to settle the claim in case of failure to notify its clients to renew their policy in due time and the peril they thought was insured occurs. There may also be paperwork or risk assessment mistakes, which are covered by this policy. Such insurance is mandatory so that the insured clients would not have trouble getting their money from brokers in case the latter are found guilty of the damage. ZF