Reporting a Potential Claim
It is very important to report a potential claim or situation to your professional liability carrier as soon as you receive notice. Notice can be a simple as an email from an unhappy client, or a phone call. It doesn’t have to be anything official like a Summons. Getting the carrier involved is so important for many reasons. You will be given free Pre Claims assistance by experts that are experienced in mitigating problems. If you don’t report the problem when it was first presented to you there is a possibility that the claim will be denied by the carrier.
Claim Scenario #1 –
An architect received an email from a client that they had a structural problem with a building that was completed over 10 years ago. The Statute of Limitations had run out as well as the Statute of Repose. At that point the Architect had no liability in the matter. However; in trying to be helpful they agreed to meet with the client and offered solutions for the problem. The Architect then reported the claim to the carrier. The carrier denied the claim because the Architect had made arrangements with out the carriers approval. The carriers standpoint was that they would not have had to rectify the situation because it was the past the statutes. At this point the expense to rectify the problem is completely on the Architect.
When you put your professional liability carrier on notice to receive pre claims assistance it does not affect your loss history. It will show up on your loss history as Pre Claims Assistance. Many times these situations are corrected without them ever becoming a a full blown claim. The insurance carriers job is to minimize the situation if possible saving you from a claim.
To report a potential claim you can call and email your agent with any emails, letters or notices that you have received. Please provide a copy of the signed, written contract or agreement for the project. A claims handler from your professional liability carrier will usually contact you within 24 – 36 hours. If legal help is needed an attorney will be assigned to your situation. If you are not sure if you should submit a situation please contact your Professional Liability agent they will help you determine your next steps.