By instructing a broker, clients are on the safe side. By contrast with other types of brokerage, e.g. exclusive agents or multiple agents, according to the BGH’s (German Federal Supreme Court) ruling on advocates, an insurance broker is required to meet particularly stringent duties of care.
Because the broker is the client’s “trustee” and is liable for any caused damage.
The broker’s duties have been defined by the BGH’s so-called ruling on advisors. They are comprehensive and you as client will benefit from them.
- As the client’s advisor, the insurance broker is required to procure individual and adequate insurance cover. In doing so, he assumes the role as the representative of the client’s interests.
- The insurance broker is acting independently. In his own initiative, he analyzes the risk to be covered and is required to notify his client constantly without delay and without further request about the interim and final results of his activities.
- As an expert in insurance matters, the insurance broker’s task is not only to advise his clients, but in particular, to also tell clients when they have incorrect views in terms of insurance with regard to security and protection.
- The broker is obliged to demonstrate compliance with his duties. In case of any damage he has the burden of proof that such damage would also have occurred if his information and consulting obligations had been met pursuant to the contact.