Who does a broker primarily owe their duty to in an insurance transaction?

In an insurance transaction, a broker primarily owes their duty to the client. This relationship is fundamental in the realm of insurance and real estate where brokers act as intermediaries between clients and insurance providers. The broker's role involves advocating for the client’s interests, ensuring that they receive the best possible coverage and terms based on their specific needs.

The fiduciary duty owed to the client encompasses responsibilities such as providing accurate information, disclosing necessary details about the insurance products, and advising the client on suitable options. By prioritizing the client's best interests, brokers establish trust, which is a crucial component of their professional relationship.

The importance of this relationship can easily be overshadowed by misunderstandings about who else is involved in the transaction. While the insurance company, the underwriter, and the principal are also key players in the insurance process, their roles do not equate to the primary duty that the broker has towards the client. The broker is engaged by the client to facilitate the transaction, making the client's interests the central focus of the broker's duties.