Reporting D&O Claims

A recent Business Insurance article (see here) on reporting D&O claims provides an excellent review of a claim reporting problem that could arise prior to an actual claim being made.  Not only does this issue apply to D&O claims, it exists with most other types of professional liability claims.

As noted in the article, virtually all D&O (and other professional liability) policies allow for the reporting of a situation which could lead to a claim prior to an actual claim being made, and the insurer will treat the notice as an actual claim during that policy period.  The problem arises if the notice of the potential situation is, in the eyes of the insurer, not specific or adequate enough to qualify as a claim.  If this occurs, reporting the same situation at a later date, particularly within a different policy, may be difficult.  In the simplest of terms, the solution is to ensure that the timing is appropriate and the information provided is thorough enough to qualify as a claim notice.  This may be quite difficult in certain claim situations.

In addition to discussing the specific question on claim reporting, the article provides a good summary of claim reporting requirements under both D&O and other professional liability forms.

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Comments

[Jim]

This website has some great information on insurance claims, along with frequently asked questions. It's a great educational tool for anyone who needs more information on insurance claims. They have sections for Auto Claims, Homeowners Claims, Recreational Vehicle Claims, Health Claims, Life Claims and more... check it out - http://www.amfam.com/claims/