Earlier this year, the appellate courts in both California and New York handed down decisions addressing whether an insurance agent or broker owes a fiduciary duty to its client. Workmen's Auto Ins. Co. v. Guy Carpenter & Co. Inc., 194 Cal.App.4th 1468 (2011); People ex rel. Cuomo v. Wells Fargo Ins. Servs. Inc., 2011 WL 534198 (2011). That these cases were heard in two of the country's most populous states reflects the current political and business environment affecting insurance and other professionals. Whether the claims are advanced by governments, companies or individuals, insurance agents and brokers are increasingly subjected to efforts to hold them to ever-higher standards.

While juries are frequently criticized (sometimes unfairly, in my opinion) for their perceived inabilities to render fair verdicts, judges will actually be the men and women deciding what kind of duty you owe your clients. Do they understand the concept of fiduciary duty in the context of your relationships with your clients? Do you?

Related: Read Barry Zalma's article “Cancellation to Litigation”.