A Longstanding Relationship Does Not Fill Every Coverage Gap
Galakatos v. Marsh & McLennan Cos., Inc., 2026 WL 2455296 (1st Cir. 2026)
Insurance brokers often work closely with business owners and individuals to identify potential coverage gaps, but that relationship does not automatically make the broker responsible for every type of insurance the client may need. In Galakatos v. Marsh & McLennan Companies, Inc., Nicholas Galakatos had used Marsh as his insurance broker since 2006. Galakatos owned a boat, Galani, which was involved in a collision in Greece in 2018. After the accident, Galakatos alleged that Marsh had failed to obtain adequate liability coverage for the boat. He sued Marsh for breach of contract, negligence, and breach of fiduciary duty. The district court dismissed his claims, and the First Circuit affirmed.
The court concluded that Galakatos had not provided enough facts to support any of his claims. For breach of contract, he did not identify a specific promise by Marsh to obtain the additional insurance coverage he claimed was missing. For negligence, the court explained that an insurance broker generally has a duty to obtain coverage that a client actually requests, but Galakatos did not allege that he specifically asked Marsh to obtain the coverage at issue. The court also rejected the fiduciary-duty claim. Although an insurance broker can take on additional duties when “special circumstances” exist, Galakatos did not allege enough facts to show that such circumstances existed. His relationship with Marsh had lasted more than a decade, but he did not allege that he paid separately for advice, that his insurance needs were unusually complex, or that he frequently communicated with Marsh about his insurance needs.
For businesses and individuals working with insurance brokers, the case highlights the importance of clearly communicating what coverage you want and documenting those requests.
A long-standing relationship with a broker does not necessarily create an obligation for the broker to identify and obtain every type of coverage that might be useful.
If you expect a broker to obtain a particular type of insurance, it is important to clearly request that coverage and establish an understanding of what the broker has agreed to do. The decision also shows that simply alleging that a broker promised to “eliminate gaps” in coverage may not be enough. The specific promise, request, or advice supporting the claim needs to be clearly identified.
This post is for informational purposes only and does not constitute legal advice. If you have questions about your specific situation, you should contact a lawyer for assistance. Nothing herein is intended to create any attorney-client relationship between you and DLM LAW.
