What is expected of an insurance broker during the placement of insurance?

An insurance broker is expected to exercise due care when placing insurance. This means that the broker has a duty to act in the best interests of their clients, ensuring that they find suitable coverage that meets their specific needs. Due care involves conducting thorough research, understanding the intricacies of the various insurance products, and presenting options that provide adequate coverage rather than just focusing on cost or profit margins.

This level of care is essential in building trust with clients and ensuring that they are adequately protected against potential risks. Fulfilling this responsibility helps ensure that clients receive tailored solutions rather than a one-size-fits-all approach, as would be the case with merely opting for the cheapest option or focusing solely on profit. In a market as complex as insurance, the importance of due care cannot be overstated, as it safeguards the clients' interests and promotes responsible industry practices.