What do I need to do if I get sued or my client advises me that he is pursuing a claim against me?
- Promptly notify local broker and Insurer ( See Appropriate Recipient of Notice Contained in Policy Declarations Page)
- Utilize Insurer’s Experience to assist in mitigation of potential loss or resolution of problem
- This could be the first time you have seen this type of situation. The Insurer has seen similar situation many times
What happens next?
- The Insurer will determine if allegations are within the scope of coverage
- If so, the insurer will provide local defense counsel pursuant to its “duty to defend” to respond to complaint without waiving potential defenses ( Insurer can negotiate favorable rates for defense counsel).
- Insurer will provide evaluation of coverage as investigation continues
- Insurer will, if opportunity presents itself, seek early reasonable resolution of claim without lengthy litigation
What do you need to do once a claim or circumstance has been notified?
- Cooperate fully with the insurer, defense counsel or the insurer’s outside counsel
- Provide additional information as requested
- Assist in the defense of the litigation
- Avoid trying to resolve situations on your own!
- DO NOT admit liability or offer any amount to resolve without insurer consent
Review your Policy’s Declaration Page
Declarations Page Contains Valuable Information
- Policy Period
- Maximum Amount insurer will pay
- Retention or Deductible
- Where to send Notice of a Claim or Circumstance
- Retroactive Date, if any