New York and New Jersey law have taken different approaches when determining broker liability. New Jersey law has proven more protective of policyholders when they use brokers to purchase insurance.

New Jersey law broadly protects policyholders against errors by their insurance agents and brokers and also provides considerable scope for findings of broker liability. In Aden v. Fortsh, the Supreme Court of New Jersey held that a policyholder need not even read its insurance policy, but rather can rely upon its broker. 169 N.J. 64 (1999). Importantly, the court also held that an insurance broker is in a fiduciary relationship with a policyholder.