Brokers are bracing for legal actions from flood-affected policyholders who claim they weren’t informed they were not covered.

One legal source contacted today by insuranceNEWS.com.au says lawyers are already putting together cases against brokers on behalf of flooded clients.

“There have been some problems because of the statements some brokers have allegedly given to their clients [over flood insurance],” the source said.

“There is going to be some major litigation. The public sees broker groups having deep pockets.”

Some organisations are providing support and advice facilities to assist brokers dealing with flood claims in Queensland and Victoria.

Steadfast Executive Chairman Robert Kelly says an online reporting facility is helping his members, and the cluster group has retained loss managers MSM to provide assistance and advice to brokers and their clients.

He says MSM will assist in cases where flood may be covered but the client is not happy with the settlement offer or claim process.

Steadfast wants members to inform them promptly of cases where clients mistakenly believed they were covered.

“We have retained national law firm DLA Phillips Fox to work with MSM on claim issues that relate to policy interpretation issues,” he said.

Meanwhile, Vero Insurance plans to host a second flood information and advice webcast for brokers later this week.

A spokesman told insuranceNEWS.com.au the previous webcast on January 20 was watched by more than 1000 brokers.

“We’ll contact brokers directly to advise them of times and subjects,” she said.