report a professional liability claim

When to report a professional liability claim to your firm’s insurance company

It is important to know when to report a claim to your insurance company but commonly the answer is as soon as your firm knows.  Here are some guidelines to follow.

When to Report:

  1. Immediately upon receiving a claim:
    • A lawsuit
    • Written demand for money or services
    • Formal complaint to a licensing board or regulatory body
  2. When you become aware of a potential claim (“Notice of Circumstance”):
    • You learn of a mistake or error that could result in a claim
    • A client threatens to sue or expresses dissatisfaction
    • A known issue may lead to financial loss or legal exposure

Why Prompt Reporting Matters:

  • Policy requirement: Most professional liability policies are claims-made or claims-made and reported, meaning coverage is only available if the claim is both made and reported during the policy period.
  • Coverage could be denied if you delay reporting.

Best Practice:

  • Check your policy for specific reporting requirements and deadlines
  • Notify your insurer in writing as soon as a claim or potential issue arises
  • Keep detailed records of what happened and how you responded

If you’re not sure whether a situation qualifies, it’s better to report it anyway or consult your insurer or broker—they can help determine the best course of action without risking a denial of coverage.

Most professional liability policies have pre-claims assistance.  If you are not sure if it is a claim or not, report the incident to your insurance agent or the insurance company.  The insurance company will then determine if it is a claim or a pre-claim.  With pre-claims assistance the insurance company will also assist to hopefully avoid a claim.

HERE is an article that goes into detail on professional liability claims reporting.

If your firm has any questions about reporting a professional liability claim please call, or email, your Professional Underwriter agent for assistance.

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