Not upheld: mis-selling - failure to provide clear information about policy terms and basis of settlement complaint against BROWN & BROWN INSURANCE BROKERS (UK) LIMITED

Decision detail

Summary

T Ltd, a motor trader, complained that Brown & Brown mis-sold its motor trade insurance policy by failing to clearly explain that business interruption claims would be settled using a rate of profit against turnover rather than true indemnity for loss of gross profits. T Ltd received only a link to the policy document rather than a physical copy, and the basis of settlement was not highlighted at renewal. The ombudsman found that while Brown & Brown could have provided clearer information, the policy terms were standard in the market and T Ltd would likely have obtained a similar policy even if properly informed. Consequently, no financial loss resulted from Brown & Brown's conduct and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Brown & Brown could have provided clearer information about the basis of settlement and the definition of gross profit, the policy terms were standard and common to most motor trade policies. Even if T Ltd had been properly informed and had sought alternatives, it would likely have found only similar policies with comparable terms. Therefore, no financial loss or material inconvenience resulted from Brown & Brown's conduct, as T Ltd would have been in the same position regardless. The ombudsman could only award compensation if T Ltd had suffered financial loss as a result of Brown & Brown's actions and would have obtained a materially different product if properly informed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website