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

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

The definition of a claim is important because your firm will want to know when/if you should be reporting a claim.  Every insurance policy will be slightly different so be sure to read your Professional Liability policy.  Here some examples of the definition of claim.

Example one

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 two

“Claim(s)” means:

1. a written demand for monetary, non-monetary or injunctive relief against any Insured;
2. a civil proceeding against any Insured commenced by the service of a complaint or similar pleading;
3. a formal administrative or regulatory proceeding or investigation against any Insured commenced by the filing of a notice of charges, formal investigative order or similar document
4. written request received by an Insured to toll or waive a statute of limitations; or
5. a demand for arbitration or Mediation received by any Insured combined with an allegation of a Wrongful Act or a Pollution Incident by the Insured.

Example three

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.

Generally speaking if you have a demand you have a claim.  However, read your policy so your firm knows exactly what that means.  When in doubt turn it into the insurance company.  As always, please read your policy.  It is a very important purchase for if/when your firm does have a claim.  If you do have questions please call or email your Professional Underwriters agent.