It’s About Time
Do you know exactly what’s expected of you, as a policyholder, if you have a claim? There’s often a lot of “insurance language” to sort through, but most importantly realize that timing is critical.
Most insurance policies contain a section outlining the policyholder’s responsibilities in the event of a claim. With liability policies in particular, the policyholder’s duty requires that claims be reported immediately or as soon as possible after the policyholder has acknowledged a claim could be made.
Here are four key facts to know about making timely claims.
- Under a claims-made policy, coverage will apply only if a claim is both made against the policyholder and reported to the insurance company during the policy period.
- Occurrence policies continue to provide coverage and protection long past their expiration date while claims made policies are useless once they expire.
- If a claim against the insured comes in during the policy period and the insurance company only receives notice after the policy has expired, the carrier has a valid and enforceable late-notice defense under a claims-made policy.
- A minor breach – one that does no harm to the non-breaching party, will not justify either a claim for damages or the rescission of coverage provided under the insurance contract.
Don’t Hesitate.
Bottom line: don't sit on anything that is or could be a claim. If you have any questions about the wide spectrum of insurance policies available, contact Kapnick. One of our friendly and knowledgeable insurance experts will be happy to assist you.
