When Should You Report a Professional Liability Claim?

Should Professionals Report Claims to Their Insurance Carrier?

You should always speak with your broker or agent before filing a claim.

As an insurance professional, you are likely well aware of the importance of reporting claims to your carrier. However, in case you’re not sure why it’s so important, here are some reasons why reporting claims should be at the top of your list:

• Protects against potential legal issues
• Covers costs associated with legal defense
• Avoids out-of-pocket costs

What Are Common Professional Liability Claims?

In order to trigger coverage under a professional liability policy, there must be an allegation that you or your business made an error or omission in the course of rendering professional services that resulted in harm to a third party.

These claims are often filed when there has been negligence, breach of contract or misrepresentation.

Professional liability claims can also include unauthorized practice of law or medical malpractice.  These are commonly referred to as legal malpractice or medical malpractice   All other professional areas of practice fall under the term “Errors and Omissions”, or “E&O”.  Both malpractice and E&O claims are considered Professional Liability claims.

When Should a Professional Report a Claim to Their Insurance Carrier?

The most important part of reporting a claim to your insurance carrier is to file the claim as soon as possible. Most policies require claims to be reported in a specific and timely fashion in order to trigger the policy.  This is especially important if you have been injured and need medical attention, but is also important when the incident was minor and you are not injured.  Timeliness of reporting a claim is important.

What Steps Should a Professional Take After Filing a Claim?

After you have filed your claim, there are several things that your insurance carrier will ask you to ensure that the company is aware of all the facts.

Gather evidence: If possible, the carrier will ask you to provide any evidence that supports you or your company regarding the claim. This can include photos, receipts and other documentation related to the incident in question.

Contact witnesses: The carrier make want to ensure that any witnesses who saw what happened are contacted by an attorney or investigator working on behalf of your case so they can provide their side of events as well.

Consult legal counsel: Once the policy is triggered, the insurance carrier will proceed with a discovery phase that includes consulting with legal counsel.

What Are the Benefits of Professional Liability Insurance?

Professional liability claims are different than incidents that may lead to a claim. It may seem as though it is difficult to determine when it’s best to report a claim or incident to your insurance carrier, but there are some general guidelines you can follow as listed above.

Professional liability insurance, like all insurance policies,  provides peace of mind by providing financial protection in the event of a claim. While proper risk management can help prevent lawsuits, having professional liability insurance coverage protects you with legal representation and funds in the event of possible indemnity payouts.

Make sure to speak with your broker or agent before filing a claim.

You can always call our office at 1-877-PLIG-123, or click here should you have any questions.