How to Report a Potential E&O Claim or Circumstance

Quick answer

If a complaint, demand, threat, regulatory inquiry or other circumstance could reasonably develop into a professional-liability claim, review the policy’s reporting requirements and contact the broker or insurer promptly. Claims-made policies can impose strict notice conditions.

What may qualify as a claim or circumstance?

The definition varies by policy. It may include a lawsuit or formal demand, but some policies also address written demands for money or services, regulatory proceedings, arbitration, or circumstances that could reasonably be expected to result in a claim.

Preserve the record

Keep relevant emails, text messages, contracts, transaction files, disclosures, inspection reports, notes, photographs and correspondence. Do not alter or recreate records after a dispute surfaces.

Avoid making coverage decisions yourself

Do not assume the matter is uncovered, too small, or likely to disappear. A late notice can create a separate problem. Likewise, avoid promising payment, admitting liability or entering a settlement without understanding the policy requirements and carrier instructions.

Notify the right parties

Follow the policy’s notice instructions. Some policies require notice directly to the insurer at a specified address or claims portal. Sending a complaint only to an office manager or broker may not satisfy the policy unless the carrier requirements are also met.

Document when notice was given

Keep a copy of the notice and confirmation of receipt. Record the date, claim number if assigned, carrier contact and any follow-up request for documents.

Reporting before renewal or carrier change

A circumstance that exists before renewal or a carrier change deserves special attention. Failure to report it under the current policy can affect whether a later claim is considered under either the old or new policy.

Read Known Circumstances and Prior Knowledge →

Review Changing E&O Insurance Carriers →

Build an internal escalation process

Brokerages should have a simple procedure telling agents and staff where to send complaints, demands and legal notices. Centralizing that process reduces the chance that important correspondence sits in an inbox until a reporting deadline passes.