How do you handle customer dissatisfaction and am I liable?

[insuranceforever1]

I work as an insurance broker in New York. Two months ago, I provided a general liability insurance quote for a customer. Over the course of those two months, I made 3 revisions to the quote changes sales and payroll, which ultimately led to its rejection by the underwriting team because they don't want too many revisions. I tried creating new quote using same information but the system detected and declined new quote.

Unfortunately, when the customer wanted to bind the coverage, I was unable to provide it. I did manage to find an alternative carrier with a slightly higher premium. However, the customer is unhappy because he expected to receive the initial quote I had provided with a lower premium. He has expressed his intention to take legal action against both me and the insurance carrier.
The question is whether the customer has grounds to retain a lawyer and sue in this situation.

 

[fed up]

If you made changes to the quote concerning sales and payroll, were these changes due to additional info from the client? If so, the quote changed because of HIM. Don't see a grounds for a suit but people sue for crap all day, any day.
Ultimately he agreed to the premium quoted to bind the policy. Next time make sure to comment that changes made by the customer can change the premium each time they request a change for the quote.

 

[marindependent]

He has expressed his intention to take legal action against both me and the insurance carrier.

Let him express his intention with an actual lawsuit. A threat of a lawsuit and a lawsuit are not one and the same.

the customer is unhappy because he expected to receive the initial quote I had provided with a lower premium.

Too Bad. Quotes are just quotes, especially during these unsual and uncertain times.

whether the customer has grounds to retain a lawyer and sue in this situation.

Only attorneys and a court will determine this. If you do receive a lawsuit contact your E&O carrier / own attorneys.

Your Job sir is to provide Insurance Options with absolutely no guarantee of insurability and attempt to bind them when requested. If you do not use the term "no gurantee of insurability" in your daily operations - start now.

Lastly if the above scenario is what actually happened, I would stop speaking on an open forum about it. Best of Luck!