Claims Reporting on a Professional Liability Policy for Architects/Engineers-

If your firm doesn’t receive a verbal or written demand, how do you know if you should report a claim or not.  This does not have a cut and dry answer, but if there are some issues on the project it is always best to report that to the insurance company.

Most professional liability insurance policies have pre-claims assistance.  This provides assistance to your firm before there is a reported claim.  Here is a definition of pre-claims assistance.

Pre-claims Assistance

The Company will pay all fees, costs and expenses the Company incurs in the investigation of a Potential Claim reported by the Insured in accordance with Section IX. Notice of Claim. The fees, costs and expenses paid under this provision must be incurred prior to the date a Claim is made. Once a Claim is made, Claim Expenses and Damages incurred are subject to Section IV. Limits of Liability and Section V. Deductible provisions of this Policy.

Depending on how your firm’s policy defines a claim, even if it is a verbal demand of money or services, from your firm’s client it is a good idea to report this to the insurance company.

The situation may also fall under a potential claim, as defined by the policy, such as:

Potential Claim means any conduct or circumstance that might reasonably be expected to be the basis of a Claim.

Depending on how the insurance company defines a claim, pre-claim, potential claim, and circumstance it will have different coverages.  The bottom line is when in doubt report it to the insurance company.

If you have any questions on when to report a claim or circumstance please call, or email, your Professional Underwriters agent for assistance.