Pre-claims assistance on an architects/engineers professional liability policy-

We are often asked if a pre-claim counts against your firm, when it comes to the renewal premium.  The answer is no, unless it turns into a claim.  However, the pre-claims assistance is in place to hopefully alleviate a claim on the circumstance that has occurred.

The wording in one of the professional liability policies for pre-claims assistance is as follows:

Pre-claims Assistance

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.

The insurance companies not only want to solve a problem before it turns into a claim, but they also know the importance of your firm’s relationship with your clients.  Pre-claims assistance helps in both of those ways and is available with most insurance companies.

The bottom-line is don’t be afraid to report a situation that may be escalating and has not become a claim.  The insurance company is there to assist in any way possible and depending on the situation at hand may also get an attorney involved.  Keep in mind that pre-claims assistance doesn’t count against your firm when it comes to your firm’s renewal premium.

Review your firm’s professional liability policy to determine if it does have pre-claims assistance and if needed use the assistance provided by the insurance company.   If you have questions with regards to pre-claims assistance, please call or email your Professional Underwriters agent for assistance.