What is pre-claims assistance on Professional Liability?

Several carriers offer free pre-claims assistance on your Professional Liability policy.  Pre-claims assistance is if you have not received a ‘notice of claim’ from your client but you feel there may be issues on the project.  The issues on the project may come in many forms such as fee disputes, potential code issues or your client is calling you asking for documentation on the project.  It is not limited to these issues but something has come to the surface on the project and is not considered a claim at this point.  The carrier will pay, at its sole discretion, all reasonable fees, costs and expenses that the carrier incurs in the investigation of a potential claim reported by your firm.  Payment of a pre-claims expense is not subject to a deductible and does not reduce the applicable Professional Liability coverage limits.

Free pre-claims assistance is a valuable service for a few reasons.  The carriers realize the importance of the relationship with your clients and want your firm to maintain that relationship as long as possible.  So if they can elevate a problem before it turns into a full blown claim that is better for all parties involved.  Also it is beneficial to have the situation resolved prior to it turning into a claim so that the claim doesn’t affect your claims history.

If ever in doubt of whether to submit a ‘pre-claim’ call your PUI agent to discuss the best avenue to take to make sure you are best protected.