Reporting claims in a timely manner is critical for any professional liability insurance coverage – E&O, D&O, EPL and Cyber Risk. What constitutes a claim varies by policy and can, in some instances, be construed broadly. (See our Prior Posts: here, here, here, here, here)
A recent article discusses claim reporting and failure to report. Entitled Malpractice: Failure to Report Client’s Claim at Professional Liability Matters, the article makes some excellent points on claim reporting, and then focuses on an attorney’s sometimes obligation to report a claim on behalf of a client.
- In the first line of the article: There is no upside in failing to report a claim
- Taking a wait and see approach to a claim situation has consequences
- Merit does not change the professional’s reporting obligation
A client’s legal counsel may have a claim reporting obligation in certain situations based on a specific malpractice case noted and discussed in the article.
Timely claim reporting is critically important in all forms of professional liability insurance coverage. Claims can include lawsuits, demands by clients and others, and potential situations which an insured may realize could result in a claim. Not only do insurers want notice so they may have the opportunity for defense, but they also want notice for ongoing underwriting.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel at hard to place accounts.