When your building encounters a loss, be it a pipe burst, injured pedestrian, or an allegation against a Board member, it is important to notify the insurance broker as promptly as possible. Doing so is a part of the Insuring Agreement for your Policy, and failure to comply could impact coverage later on. Prompt claim reporting allows the insurance carrier to open up a file and assess the damage or the threat posed to the insured location. The carrier has an insurable interest in the insured location, and they have the right to be made aware of any potential issues. In the case of a first party property claim, prompt reporting will allow the carrier to properly evaluate remediation and restoration costs, which can help avoid confusion later between the insured and the vendors. Prompt reporting is particularly important when it comes to claims-made on policies such as D&O and E&O; failure to notify the carrier at the first mention of a potential liability issue could result in a claim being denied for late reporting. When it comes to claims handling, protecting the interests of the insured is paramount. Be sure to report all claims as timely as possible to avoid potential issues with coverage.
