Definition of a Claim and When to Report It

Definition of a Claim and When to Report it to Your Design Firms Professional Liability Insurance Company

Claims, generally speaking, are a demand for money or service.  A demand doesn’t have to be a formal written demand; it can be a verbal demand for money or services.

Here are a few examples from insurance company’s policies for the definition of a claim:

Claim means:

  1. a demand for money or services;
  2. a civil proceeding commenced by service of a complaint or similar pleading; or
  3. a written request to toll or waive a statute of limitations relating to a potential civil or administrative proceeding, against any Insured for a Wrongful Act.

Claim means a demand for money or services, naming the Insured and alleging a wrongful act or pollution incident.

Claim means a demand for money or services received by the Insured arising out of a wrongful act or pollution incident in the performance of professional services. A claim also includes the service of suit or the institution of an arbitration proceeding against the Insured.

If you receive a written or verbal demand report it immediately to the insurance company.

On the other hand there may be a circumstance that has occurred with the project that may bring your firm some concern.  If this happens also report this to the insurance company it may turn into a claim and it is always best to have the insurance company involved as soon as possible.  Keep in mind that this may be considered a pre-claim, which most insurance companies offer and typically will not cost your firm anything.

If you are ever in doubt if you should report a circumstance or claim speak with your insurance agent to discuss the situation.  Your Professional Underwriter agent is there to help, please call or email with your questions.definition of a claim

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