Definition of a claim in a professional liability policy for architects/engineers-

It is important to understand how a claim is defined as in a professional liability policy to know when to report the claim. Here are few examples of claims definitions from insurance companies.

Example one:

“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 ofa notice of charges, formal investigative order or similar document;
  4. a 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 two:

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.

The claim definition is different from a pre-claim, the language will look similar to the following.

PRE-CLAIM ASSISTANCE

At the Company’s discretion, the Company will pay Pre-Claim Expenses for a Potential Claim reported in accordance with section VIII. NOTICE OF POTENTIAL CLAIMS. Pre-Claim Expenses must be incurred prior to the date that any Claim is made based upon or arising out of such Potential Claim. Payment of Pre-Claim Expenses is not subject to a Deductible and does not reduce the applicable Professional Liability Coverage Limits. Once a Potential Claim becomes a Claim, Damages and Defenses Expenses that result from such Claim are subject to a Deductible and will reduce the applicable Professional Liability Coverage Limits.

If you have any questions about claims definitions please call or email your Professional Underwriters agent for assistance.claim