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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 111683
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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We have told clients we have 1million liability insurance and

Customer Question

We have told clients we have 1million liability insurance and 4 million umbrella for past 5 years. Turns out our insurance provider never increased the umbrella from 1 million. Even though they stated on our certificates of insurance we had it. Do we have a legal case against them?
Submitted: 6 months ago.
Category: Legal
Expert:  KJL LAW replied 6 months ago.
Good morning. The case for Fraud or misrepresentation, and breach of contract would be difficult if you did not pay for the higher coverage, but if you paid for the coverage then you would
have an action against the
insurance company if broker. In the action you could include all
of your damages that you can
document and put a monetary figure on . I hope this helps.
Customer: replied 6 months ago.
my concern is the companies that we told we had the higher insurance and the legal documents i signed stating that when in fact we did not... do we have any exposure?
Expert:  KJL LAW replied 6 months ago.
Potentially, there could be, but if no claims are made then the coverage issue should not be a problem. It would depend on what you signed legally.
Customer: replied 6 months ago.
the master service agreements
where it talks about that all the information i am agreeing to is truthfull i cannot attach the document to this but i can email it to you
Expert:  KJL LAW replied 6 months ago.
email the document to the email on my profile.
Customer: replied 6 months ago.
allen i dont see an email on this profile see attached
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
It appears that your previous contributor had to leave. I am a DIFFERENT CONTRIBUTOR.
This would be a problem for you only if there was a claim between when you asked to increase the umbrella to when you caught the mistake and got it corrected. The law uses the "no harm no foul" theory on this type of claim. In order to have a legal claim against the insurer for errors and omissions, which is what this would come under, you have to prove actual harm occurred to you as a result of them not increasing your coverage. If no actual harm occurred, you are entitled to get the matter corrected, but there is no legal action to be filed.
If a claim was filed during the time they made the mistake, then you would have to prove you ordered the increased coverage and the insurer neglected to make the change and this would come under the insurer's error and omissions policy.
In your agreement, you agreed all the information was truthful AND IT WAS TRUTHFUL BASED ON YOUR INFORMATION AND BELIEF THAT YOU DID INCREASE YOUR COVERAGE. You are not liable for telling the insurer to increase coverage and them neglecting to do so, that is not a falsification of the contract. So you caught the mistake and if it was before any harm, you would not be in breach of the agreement by correcting that mistake. If there was a claim, then you would have basis to sue the insurer for their error and omission in failing to increase coverage based on your instructions to do so.

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