Learning the Liability Insurance Claims Process

Learning the Liability Insurance Claims Process

Table of Contents

The liability claims process, like other aspects of professional liability coverage, may vary somewhat from one provider to the next. However, a few general principles apply across the board. You will find it helpful to become familiar with as many details of the overall copyright claims proceeding as you can long before you ever face the prospect of replying to a claim against your business in court. It is always hoped that you won’t need the services of your professional liability insurance provider. However, should you find yourself needing to call upon your insurer’s help, knowledge of your next step can prove immensely helpful.

While the information you find in the course of your research can both set your mind at ease and equal a less substantial time investment when and if a need does arise in the future, you will not want to assume that your provider goes strictly by the standard guidelines. Just as you would compare provider premium quotes and policy provisions, make certain you compare the processes of filing claims among the providers you consider. After all, the point at which you make a claim can be one of the more stressful times during your career. It is important to find an insurer that employs streamlined tactics that take as much burden off you as possible.

Basic Claims Proceedings

First of all, know when you will need to process a claim with your provider. This information is bound inextricably to the specific ways in which your insurer protects you. The general nature of professional liability, or Errors and Omissions, insurance is that it renders a financial safety net that you can count on if a client or customer files a certain type of legal claim against you. While there are some insurances that help you out if the claim relates to bodily injury or false advertising, those scenarios are not covered by professional liability. Instead, it aides you if someone alleges that you exercised neglect or oversight in either the manufacture of a product or the dispensing of professional advice.

If you are met with such a claim, your first response should be to contact your insurance broker immediately. Even if you normally handle any necessary communication with your provider through email or postal mail, you should call directly when you need to file a claim. You will contact your broker when and if the situation appears bound for court or on track to cost your company money. Even if you are uncertain of the gravity of an allegation against your company, call your insurer for advice.

Ratings of the Claims Process

Even if you are fastidious in your investigative efforts, finding out every detail you can of all competing insurance companies, it may be difficult to get a grasp on how a particular insurer will handle its actual claims process. If you are a relatively new business owner securing professional liability coverage for yourself for the first time, you may have very little idea personally of what is involved when a complaint is officially registered against your business. This is an important reason to pay attention to the friendliness, efficiency, and organization of insurers when you initially speak with them.

One part of learning the liability insurance claims process involves reading consumer reviews. There are a number of independent sources that collect customer ratings along with in-depth reviews after they have been loyal customers with a certain company. You may find these reviews beneficial for not only the general information laced throughout them, but for an idea on whether an insurer handles claims in a professional, helpful way.