An Insurance Broker’s Duties are Defined by Negligence Law, Not Fiduciary Law


In a published decision, the California Court of Appeal (Second Appellate District, Division Two) has held that an insurance broker cannot be held liable for breach of fiduciary duty. The decision is Workmen’s Auto Insurance Company v. Guy Carpenter & Company, Inc., 2011 Cal. App. LEXIS 533.

The plaintiff insurance company alleged that it had a brokerage agreement with Carpenter which authorized Carpenter to act as a reinsurance intermediary-broker to procure reinsurance for the plaintiff. The plaintiff alleged that the broker did not obtain insurance on the best available terms, and thereby breached a fiduciary duty to the plaintiff. The broker argued in its demurrer and, later on appeal, that it could not be sued for breach of fiduciary duty. Both the trial court and the Court of Appeal agreed with the broker.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sedgwick LLP | Attorney Advertising

Written by:


Sedgwick LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.