Insurance Agent Negligence & Errors & Omissions (E&o)
What Is Insurance Agent Negligence?
Insurance agents have a professional duty to secure the property insurance claims coverage you need — and to explain what your policy does and doesn’t protect. When they fail to do that, and you suffer a financial loss, it may be considered negligence. Our insurance agent negligence attorneys are here to help commercial property owners and homeowners in Michigan, Ohio and across the country when you are a victim of insurance agent negligence.
Michigan's Underinsurance Crisis: Why So Many Property Owners Discover They Do Not Have Enough Coverage
Reconstruction costs in Michigan have risen approximately 25% in recent years due to increased material prices, labor shortages, and updated building code requirements. This means that a property insured for $500,000 three years ago may now cost $625,000 or more to rebuild — and if your insurance agent failed to adjust your coverage limits, you are underinsured.
Underinsurance is one of the most devastating problems a property owner can face after a loss. You pay your premiums every year expecting to be fully protected, and then after a fire, storm, or water loss, you discover that your policy limits are tens or even hundreds of thousands of dollars short of what it actually costs to rebuild your home or commercial building. The insurance company pays the policy limit and considers the claim closed. You are left covering the gap out of pocket.
In many of these situations, the insurance agent is at fault. Agents have a duty to periodically review coverage with their clients, recommend adequate limits based on current construction costs, and advise on endorsements that protect against gaps. When agents fail to do this — when they let a policy auto-renew year after year without adjusting coverage for rising costs — and the policyholder suffers a loss that exceeds their limits, the agent may be liable for the difference.
Our insurance agent negligence attorneys handle these cases throughout Michigan and Ohio. We pursue claims against agents and their errors and omissions (E&O) insurers to recover the money your policy should have provided if your agent had done their job correctly.
What types of claims do our insurance agent negligence attorneys litigate?
Failure to Secure Requested Coverage
You asked for specific protection — and the agent never obtained it.
Misrepresentation of Policy Terms
The agent gave you incorrect or misleading details about what your policy covered.
Failure to Advise on Exclusions or Limits
You weren’t warned about important gaps or limitations that later caused your claim to be denied.
Why Insurance Agent Negligence Matters
When an insurance agent fails in their professional duties, the consequences can be devastating. Homeowners and business owners often don’t realize something is missing until a claim is denied — and by then, it’s too late to fix the coverage.
Agent mistakes can result in:
Claims denied that should have been covered
Hundreds of thousands to millions of dollars in unexpected out-of-pocket costs
Business income losses not reimbursed
Permanent damage to businesses, homes, commercial properties, or operations
These cases aren’t just frustrating — they’re legally actionable when handled correctly. And they require specialized Insurance Agent Negligence Attorneys who understand how agents operate, what duties they owe, and how to prove fault.
Whether your agent’s mistake left you without protection after a fire loss, storm loss, or water loss, our Michigan Insurance Agent Negligence Attorneys can help you recover the compensation you were promised.
When Your Insurance Company Denies the Claim AND Your Agent Made a Mistake
Some of the most complex property insurance cases we handle involve two problems at the same time: the insurance company is denying or underpaying the claim, and the insurance agent made a mistake that contributed to the coverage gap.
For example, a Michigan business owner suffers a fire that destroys their commercial building. The insurance company pays a portion of the claim but disputes the replacement cost calculation and refuses to pay for code upgrades. At the same time, the business owner discovers that the agent never recommended a business interruption endorsement, a law and ordinance endorsement, or adequate building coverage limits — leaving hundreds of thousands of dollars in losses unrecoverable from the insurer.
In these situations, you may have claims against both the insurance company and the insurance agent. Our attorneys handle both types of claims simultaneously, pursuing the insurer for everything owed under the existing policy while also pursuing the agent for the coverage gaps their negligence created.
This combined approach — property insurance litigation plus agent negligence — is a core strength of our practice. Most law firms handle one or the other, not both. We have the experience and expertise to evaluate every angle of your loss and pursue every available dollar of recovery. We represent clients in Michigan, Ohio, and on select large-value cases nationwide where agent negligence left a policyholder significantly underinsured.
Why Choose our Michigan Insurance Agent Negligence Attorneys
Michigan’s Property Insurance Claim Litigation Specialists
Our firm has focused exclusively on property insurance, including agent negligence claims since 1986.
Proven Results as Michigan Insurance Agent Negligence Attorneys
We’ve recovered over an estimated $500 Million in property insurance claims litigation, including in agent error cases involving denied home, commercial, and liability claims.
We Act Fast to Preserve Evidence
The sooner we’re involved, the more we can do to build leverage, gather documentation, and secure your rights.
Agent Negligence Frequently Asked Questions
Can I sue my insurance agent for selling me the wrong coverage in Michigan?
Yes. If your insurance agent failed to secure the coverage you requested, misrepresented what your policy covered, or failed to advise you about important exclusions or limits, and you suffered a financial loss as a result, you may have a claim for insurance agent negligence under Michigan law. These claims are brought against the agent’s errors and omissions (E&O) insurance policy. Our attorneys have successfully recovered millions of dollars from negligent agents and their E&O carriers.
How do I know if I am underinsured on my Michigan home or commercial property?
The most common sign of underinsurance is finding out after a loss that your policy limits are not enough to rebuild your property at today’s construction costs. With reconstruction costs rising approximately 25% in recent years, many Michigan property owners are significantly underinsured without realizing it. If your policy has not been reviewed and adjusted in the last two to three years, you may be at risk. After a loss, our attorneys can evaluate whether your agent failed to recommend adequate coverage.
What is the difference between suing my insurance company and suing my insurance agent?
When you sue your insurance company, you are claiming they owe you money under your existing policy — they denied a covered claim, underpaid, or acted in bad faith. When you sue your insurance agent, you are claiming the agent made a professional mistake that left you without the coverage you should have had. In some cases, you may have claims against both. Our firm handles both types of cases simultaneously to maximize your total recovery.