Notice of Circumstances
Key Takeaway
A report to the insurance carrier of facts or circumstances that may reasonably give rise to a future claim, even though no formal claim has yet been made. Filing a notice of circumstances during the current policy period can anchor coverage to that period if a claim later materializes, even after the policy has expired..
Definition
A report to the insurance carrier of facts or circumstances that may reasonably give rise to a future claim, even though no formal claim has yet been made. Filing a notice of circumstances during the current policy period can anchor coverage to that period if a claim later materializes, even after the policy has expired.
Why This Matters for Law Firms
How claims are handled directly impacts your firm financially and reputationally. Understanding the claims process and related terminology helps law firm leadership make informed decisions when a claim or potential claim arises, and ensures you do not inadvertently jeopardize your coverage by failing to comply with policy requirements.
Example Usage in Context
When a partner receives a demand letter from a former client, the firm's risk manager might reference this: "We need to understand the notice of circumstances requirements under our policy before taking any action. Let me contact our carrier and broker immediately."
Related terms
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