What Is Insurance Agent Negligence and can you sue them in Michigan?
Insurance agent negligence in Michigan can devastate policyholders when coverage gaps surface after a loss.
When you purchase a homeowners, commercial, or property-insurance policy, you rely on a licensed agent to secure the right coverage. If that agent’s mistake leaves you under- or uninsured, Michigan law may hold them liable for insurance agent negligence. At Fabian, Sklar, King & Liss, we’ve recovered significant settlements for policyholders whose agents failed them.
An agent’s duty is not just ethical—it’s statutory. Under MCL 500.1239, Michigan agents must exercise reasonable skill and diligence in procuring requested insurance. The Michigan Department of Insurance and Financial Services (DIFS) enforces licensing standards—yet coverage gaps still happen.
How to Prove Insurance Agent Negligence in Michigan
Common Agent Errors That Trigger Lawsuits
- Failure to Obtain Requested Coverage. Example: you ask for flood or sewer-backup coverage; the agent never binds it.
- Misrepresentation of Policy Terms. You are told fire and smoke are fully covered, but exclusions appear post-loss—see our fire-damage claim guide.
- Incorrect Valuations. Agent undervalues your building; a water loss reveals you’re 40 % underinsured.
- Lapse in Renewal. Missed renewal leaves you uncovered for hail; compare our hail-damage overview.
Each error can expose the agent—and often their E&O insurer—to substantial liability and can be insurance agent negligence in Michigan.
Do you have an insurance agent negligence Michigan Case?
Can You Sue Your Insurance Agent? Yes—Michigan law recognizes a negligence cause of action against agents.
To win, we must prove:
- A specific duty—generally shown through documented requests or prior advice.
- Breach—agent failed to procure, renew, or explain coverage.
- Proximate cause—your uncovered loss flows directly from that breach.
These elements create a high bar, but they are met in many of the successful recoveries we’ve obtained for Michigan policyholders.
Why insurance agent negligence Michigan cases need Expert Attorneys
Why Agent-Negligence Cases Are Challenging
- Michigan courts require specific requests; assumptions aren’t enough (NAIC agent-duty guidance).
- Agents often blame carriers or “market availability.”
- Documentation gaps—verbal requests without emails or letters.
The solution? Meticulous records. Read our step-by-step on documenting property damage and keep copies of all agent communications.
How we prove your insurance agent negligence Michigan lawsuit
Our Strategy to Prove Agent Negligence
- Deep Dive into Correspondence. We analyze every email, application, and renewal notice.
- Expert Analysis. Independent adjusters quantify true replacement-cost values and policy gaps.
- Appraisal & Litigation. If an insurer also contests the underlying claim, we pursue appraisal (see our negotiation guide) or file suit.
“Agent-negligence cases succeed when you connect the dots between a clear request, a clear failure, and a clear loss. Our firm excels historically at building that chain and forcing accountability.”
— Jason J. Liss
Michigan Deadlines: Act Before Time Runs Out
Missing a filing deadline can destroy an otherwise iron-clad insurance agent negligence Michigan claim. State law generally allows three years from the date you discovered (or reasonably should have discovered) the agent’s error to file a negligence lawsuit under MCL 600.5805. If your claim is framed as breach of contract, a six-year limit may apply—but courts often treat coverage-procurement cases strictly as negligence. Waiting “to see what the insurer will do” can therefore backfire.
Equally important: preserve evidence early. Send the agent a written demand for the missing coverage within weeks of uncovering the gap. Keep emails, proposal forms, and any texts confirming the coverage you requested. These documents show the agent’s duty and breach—core elements of liability. Our firm moves fast; once retained, we issue a spoliation letter to the agent and carrier, forcing them to preserve all policy applications and internal notes before they “disappear.”
In short, time and documentation are critical. Contact us as soon as you suspect insurance agent negligence in Michigan so we can protect your rights before the clock runs out.
Do you have an insurance agent negligence Michigan case
Suspect Your Agent Failed You?
If an uncovered loss is draining your finances, contact Fabian, Sklar, King & Liss today. Our attorneys pursue agent-negligence, bad-faith, and breach-of-contract claims statewide—and we don’t collect a fee unless we secure compensation for you.
Disclaimer: Attorney advertising. Past results do not guarantee future outcomes. Each case is unique and depends on specific facts and law. No specialization implied unless certified.
Get In Touch
Contact Details
- Address : 33450 West 12 Mile Road, Farmington Hills, MI 48331
- Number : (248) 553-2000
- Email : info@fabiansklar.com
Office Hours
- Monday to Friday: 8.00 AM – 6:00 PM