Pre-Claim Assistance on Professional Liability for Architects/Engineers

What is pre-claims assistance and why should my firm use it?

Pre-claim assistance is a program that most Professional Liability insurance companies provide.  The insurance company will pay for reasonable fees, costs and expenses for the investigation of a potential claim reported by your firm.  These are not fee disputes with your client.  These are indications of a potential claim which may include a written or verbal accusation to make a claim, a realization that there may be some basis for professional negligence or a claim filed against your client in correction with professional services your firm provided.

While most firms are hesitant to report these types of situations but a pre claim report actually can be quite beneficial.  The insurance companies may facilitate claim repair, mitigate claim exposures and help your firm to avoid adverse publicity associated with the litigating a claim.   Additionally, this may help maintain the relationship your firm has with your client.  Also, pre-claim assistance does help circumstances that could potential turn into an actual claim.

Specific situations that you may want to consider reporting a pre claim are written or verbal threats to make a claim from your client, subpoena for documents or testimony, actual errors or omissions (even though an actual claim has not been reported) and if you are worried about how a project has been in general.

Remember the insurance companies are there to help in any way possible.  If there is something that has occurred on a project that you think may turn into a claim contact your agent or insurance company.  If you are not sure if it is a pre-claim situation contact your insurance agent or the insurance company and provide details of the situation.  If you do have questions please call or email your Professional Underwriters agent.