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:
- the service of suit or institution of arbitration proceeding or other alternative dispute
resolution requests; and
- a threat or initiation of a suit seeking injunctive relief (meaning temporary restraining order or permanent injunction).
Example 2:
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. 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.
