Professional liability claims assistance and cooperation for design professionals -
Your firm has reported a claim to your insurance company, now what. Your firm is required to provide assistance and cooperation with the claim. Here are a few examples of the policy wording.
Example one:
Assistance and Cooperation
(1) The Insured will cooperate with the Company in the defense, investigation, and settlement of any Claim. Upon the Company’s request, the Insured will attend hearings, depositions and trials and assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits and proceedings in connection with a Claim.
(2) The Insured will assist in the enforcement of any right of contribution or indemnity against any person or organization who or which may be liable to any Insured in connection with a Claim.
(3) The Insured will not, except at the Insured’s own cost, voluntarily make any payment of Claims Expenses or Damages, assume, or admit any liability or incur any Claims Expenses or other expense without the prior written consent of the Company.
Example two:
In the event a Principal Insured becomes aware that a Claim has been made against any Insured, the Insured, as a condition precedent to any rights under this policy, will give to the Company written notice of the particulars of such Claim, including all facts related to any alleged Wrongful Act, the identity of each person allegedly involved in or affected by such Wrongful Act, and the dates of the alleged events, as soon as practicable. The Insured will give the Company such information, assistance and cooperation as the Company may reasonably require. All notices under this section must be sent or delivered to the Company set forth in ITEM 3 of the Declarations and are effective upon receipt. The Insured will not voluntarily settle any Claim, make any settlement offer, assume, or admit any liability or, except at the Insured’s own cost, voluntarily make any payment, pay or incur any Defense Expenses, or assume any obligation or incur any other expense, without the Company’s prior written consent, such consent not to be unreasonably withheld. The Company will not be liable for any settlement, Defense Expenses, assumed obligation, or admission to which it has not consented.
The insurance company and the attorney are there to help your firm with the claim. The more detailed information your firm can provide, the better they can defend your claim.
If you have any questions about assistance and coordination, please call or email your Professional Underwriters agent for assistance.