Trial lawyer puts brokers on E&O notice, citing a higher duty of care after auto reforms

The higher standard of care owed by brokers to consumers as a result of the auto reforms will result in trial lawyers suing brokers “big-time” for failing to properly explain optional benefits to their clients, according to Richard Halpern, partner at Thomson Rogers LLP.
Halpern, a board member of the Ontario Trial Lawyers Association (OTLA), spoke to delegates attending a seminar at the Insurance Brokers Association of Ontario’s 90th Annual Convention.
“You have a problem,” Halpern said. “You have got to make sure that your consumers are told about the optional coverages [available under the new auto product].
“You have to document this properly. You have to encourage people to purchase the optional coverage.
“And if you don’t, it will come back to bite you. People like me can’t wait to sue brokers over this. It’s going to happen, and it’s going to happen big-time because the bar for the standard of care owed by brokers is higher than it’s ever been before, in my view.”
Halpern suggested that to avoid E&O claims being brought against them, brokers should be “pushing” the optional coverages on their clientele.
In particular, he suggested pushing higher liability limits. “As you know, the minimum limits in Ontario are $200,000, which is ridiculous. Most people buy $1-million liability limits. But I suggest that the minimum ought to be $2-million.”