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
Failure to Promptly Notify can threaten ability to recover under policy (mandatory notification of potential claim).

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