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E&O Do's and Don'ts When There is a Claim

Under most professional liability insurance policies a “claim” arises when you first become aware of a proceeding, event or development which could result in liability for you. A claim includes a lawsuit, a regulatory complaint, a request for mediation or arbitration and a demand for money or services. Any claim should be promptly reported to your insurer.

Here are some Do’s and Don’ts when faced with a
claim:

DO . . .
·          Notify your insurance carrier immediately by telephone and in writing.
·          Send all claim documents to your appointed lawyer.
·          Keep a copy of all claim documents for yourself.
·          Put all pertinent documents, memos, etc. in chronological order.
·          Notify all involved personnel about the claim.
·          Respond promptly to all reasonable requests from your E&O insurance carrier.
·          Talk to your lawyer.
DON’T . . .
·          Ignore the claim.
·          Attempt to handle the claim by yourself.
·          Discuss the matter with the other party.
·          Attend any meetings involving the other party.
·          Sign or accept releases / affidavits.
·          Write a letter explaining your position.
·          Talk to investigators or claim adjusters by giving recorded statements.
·          Talk to the other party’s lawyer.
·          Respond to regulatory complaints without legal advice.


Author: Myles P. Hassett - The Hassett Law Firm P.L.C., Phoenix