Free Pre-Claims Assistance for Architects and Engineers

Most Professional Liability insurance companies offer free pre-claims assistance for firms.  This is offered when a claim has not technically been filed but your firm feels that there may be an issue forthcoming.

Here are some examples of a situation that would be a pre-claim:

-indications of a potential claim or allegation, verbal or written.

-subpoena for documents or testimony

-awareness of an actual or alleged error, even though a claim has not been made.

-issues on a project that you feel worried about.

If you have one of these that come up at your firm, call your insurance company to discuss the situation.  They will assists your firm and pay for, if needed, at their sole discretion, all reasonable fees, costs and expenses that the carrier incurs in the instigation of a potential claim reported.  Payment of a pre-claims expense is not subject to a deductible and does not reduce the Professional Liability coverage limits.  However, if a pre-claim turns into a claim by definition of the policy then the deductible does apply and coverage limits are affected.

The insurance company would rather know about the potential for a claim early on so that the situation can be taken care of rather than fester into a larger issue.  Additionally, you may still have a relationship with your client and want to maintain that relationship, the pre-claim assistance may help in maintaining it.   A pre-claim, instead of a claim, will help to keep a clean claims history for your firm.

Pre-claims aren’t always easy to determine.  It is best to discuss the situation with your agent or insurance company.   If you have any questions please call or email your Professional Underwriter.