Definition of a Claim in an A/E Professional Liability Policy

Definition of a Claim in an Architects/Engineers Professional Liability Policy

Each insurance company has a different definition of a claim, be sure to read your insurance policy so that you know what it means for your firm.  Here are a few examples of the claims definitions.

Example 1:

“Claim” shall mean a demand received by any Insured for money or services as a matter

of right, including:

  1. the service of suit or institution of arbitration proceeding or other alternative dispute

resolution requests; and

  1. a threat or initiation of a suit seeking injunctive relief (meaning temporary restraining order or permanent injunction).

Example 2:

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. A Claim will be deemed to be made on the earliest date such notice thereof is received by any Principal Insured.

Example 3:

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

As you may notice in the examples, the definition may be detailed or as simple as it is a demand for money or services.   If you are not sure if it is a claim or not call or email the claims representative to have a discussion about the specific situation to make a determination of claim.  In most cases, the insurance company will set it up as pre-claims assistance if it isn’t a full blown claim.

As always, read your policy to better understand the claims definition in your policy.  If you have questions please call or email your Professional Underwriters agent.

Definition of a claim

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