How is it determined if my architecture/engineering firm has a claim on Professional Liability?
A claim is determined by the definition of a ‘claim’ in your firm’s policy. Generally, it will be a demand for money or services.
Here is a definition of a claim to help to better understand:
“Claim(s)” means:
- a written demand for monetary, non-monetary or injunctive relief against any Insured;
- a civil proceeding against any Insured commenced by the service of a complaint or similar pleading;
- 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;
- a written request received by an Insured to toll or waive a statute of limitations; or
- 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.
If your firm’s situation doesn’t fit under the claim definition it may be considered a ‘circumstance’.
A circumstance is defined as:
“Circumstance” means an event or occurrence from which the Insured reasonably expects that a Claim(s) for an alleged Wrongful Act or Pollution Incident will be made.
If your firm doesn’t have a claim or circumstance you may want to consider reporting it as a pre-claim. The pre-claim assistance as it may read in your firm’s policy:
The Company will pay all fees, costs and expenses the Company incurs in the investigation of a Potential Claim reported by the Insured in accordance with Section IX. Notice of Claim. The fees, costs and expenses paid under this provision must be incurred prior to the date a Claim is made. Once a Claim is made, Claim Expenses and Damages incurred are subject to Section IV. Limits of Liability and Section V. Deductible provisions of this Policy.
If you have any questions with regards to claims, circumstances or pre-claims please call or email your Professional Underwriters agent for assistance.