P & c questions
- Thread starter pc insurance
- Start date
Here's an example of an E&O reporting requirement [emphasis added]:
Here's the definition of "potential claim" [emphasis added]:
If you think you could be sued because of something that happened, you are contractually obligated to report it. And it's generally a good idea...if you get your E&O carrier involved early enough, they might be able to prevent the event from developing into an actual claim or suit.
Many, if not most, E&O claims arise from denied claims. One thing I spend a lot of my time doing, sometimes by assisting the E&O carrier, is convincing the insurer of the agent's customer that the claim is covered. If the claim is paid, the potential E&O lawsuit usually goes away.
The insured shall...provide written notice of any "claim" to us or the producing agent shown on the Declarations Page as soon as practical. Any "potential claims" must be reported to us in writing during the "policy period" or Extended Reporting Period. If, during the "policy period," you, or any owner, officer or partner of the "named insured" first become aware of a "potential claim" and give written notice of such "potential claim" to us during the "policy period," any "claims" subsequently made against an insured arising from the "potential claim" shall be considered to have been made during the "policy period" that you, or any owner, officer or partner of the "named insured" first became aware of such "potential claim";
Here's the definition of "potential claim" [emphasis added]:
"Potential claim" means that you, or any owner, officer or partner of the "named insured" has become aware of a proceeding, event, or development which has resulted in or could in the future result in the institution of a "claim" against the insured.
If you think you could be sued because of something that happened, you are contractually obligated to report it. And it's generally a good idea...if you get your E&O carrier involved early enough, they might be able to prevent the event from developing into an actual claim or suit.
Many, if not most, E&O claims arise from denied claims. One thing I spend a lot of my time doing, sometimes by assisting the E&O carrier, is convincing the insurer of the agent's customer that the claim is covered. If the claim is paid, the potential E&O lawsuit usually goes away.
Holly cow! I think you need to report this to the E&O Carrier no matter what. $400K is a huge loss that I am sure the insured will want to get paid no matter what. The insurance company is not going to go down without a fight in court and they will bring everyone into it. Do yourself a favor and report it. It may be nothing but it could be way more.
- 1,473
My question is what kind of a cliam would be $400,000 did his house fly in the wind?
First, the policy expired over a year ago. If he takes your suggestion and report it, he will just complicate the issue. I think the client is just playing dumb. Gee I didn't realize I wasn't paying premium. Next he will claim the powerball prize, well I had those numbers last year. Just let the carrier handle it!
- Thread starter
- #17
pc insurance
New Member
- 3
It is a commercial policy.
- 1,473
Okay here is your plan follow it:
1. close your shop
2. Move out of the country
3. cancel your insurance lice
4. cancel your phone number
this way your stupid customer will not find you...oh but wait
BigIVU -
Thanks for posting the language. Based on that, there is NO NEED to report it to the E&O carrier unless your e&o policy is about to renew and you really think this might become an e&o claim, or, if you think you might lapse your E&O.
The language is based on the fact that E&O is claims made based, not occurrence based. You have to have a claim date to ensure there is coverage. Outside of that, no need to rush to report the claim that will probably never happen.
Dan
Thanks for posting the language. Based on that, there is NO NEED to report it to the E&O carrier unless your e&o policy is about to renew and you really think this might become an e&o claim, or, if you think you might lapse your E&O.
The language is based on the fact that E&O is claims made based, not occurrence based. You have to have a claim date to ensure there is coverage. Outside of that, no need to rush to report the claim that will probably never happen.
Dan
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