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:
- a demand for money or services;
- a civil proceeding commenced by service of a complaint or similar pleading; or
- 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.