Notice of Claim
Key Takeaway
The formal notification to the insurance carrier that a claim has been made against the insured. Timely notice is a condition of coverage under most claims-made policies.
Definition
The formal notification to the insurance carrier that a claim has been made against the insured. Timely notice is a condition of coverage under most claims-made policies. Failure to provide prompt notice can give the carrier grounds to deny coverage, making it essential to report claims as soon as they are received.
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 claim requirements under our policy before taking any action. Let me contact our carrier and broker immediately."
Related terms
Need help understanding your policy?
Get a free coverage review and we'll walk through every key term in your law firm's insurance program.