If any agents or brokers doubt how expensive the simple act of not documenting a client's requests can be, all they need do is review a recent case in California where one brokerage is facing a $5.8 million judgment.
In that case–Williams v. Hilb, Rogal & Hobbs Insurance Services of California–the Court of Appeal of California in Los Angeles upheld a lower court's decision that the broker failed to secure workers' compensation insurance for its client.
According to court papers, the court had to decide if the broker was negligent “in advising on, procuring and maintaining an insurance package for a new business venture” that did not include workers' comp.
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