Report a claim or not?

The first question your firm should ask, is this a claim based on the definition of claims in your firms professional liability policy. Here is an example from a policy for the definition of a claim.

Claim means a demand for money or services received by the Insured arising out of a wrongful act or pollution incident in the performance of professional services. A claim also includes the service of suit or the institution of an arbitration proceeding against the Insured.

If the definition fits your firm’s situation then yes you will need to report the claim.

The policy also defines the situation in which your firm will need to report a claim.

The Insured, as a condition precedent to the obligations of the Company under this policy, will give written notice to the Company as soon as reasonably possible during the policy period, or any applicable extended reporting period or Claims Reporting Grace Period.

Once the claim is reported your firm will be required to comply with the requests of the insurance company and/or attorney that is working on your firms claim.

Additionally if it is potential claim, in most cases, your firm will need to report the circumstances associated with the potential claim situation. The potential claim situation may come under the pre-claim but it will be determined by the claims adjuster to determine how the potential claim is defined.

If your firm is not sure if it is defined as a claim then you may ask the insurance company or your firm’s insurance agent. Your policy will also have a pre-claims assistance program if it doesn’t fall under the definition of a claim.

If you have any questions with regards to claims, potential claims or pre-claims please call or email your Professional Underwriters agent for assistance.