When Should You Report a Liability Claim to Your Insurer?

One of the most common questions in the insurance industry is: When should an insured report a liability claim to their insurer?

Is it when they receive a summons? 

Absolutely not!

When you enter into an insurance contract, you agree to certain terms, conditions, and exclusions; and these often set very clear timelines for claim reporting.

Policy Requirements for Reporting

Different liability policies have slightly different rules:

• General Liability policies often require you to notify your insurer of a claim as soon as reasonably practicable
• Professional Indemnity policies may require you to report as soon as possible, and within 31 days during the policy period
• Directors & Officers (D&O) and Trustees Liability policies tend to have similar clauses

Failing to meet these notification requirements could jeopardise your cover.

Why Timely Reporting Matters

The notification clause exists to give your insurer the best chance to investigate the event while evidence is still fresh. Prompt reporting allows the insurer to:

• Gather witness statements, photographs, and CCTV footage before it’s lost
• Take immediate steps to mitigate losses
• Appoint a loss adjuster quickly to collect documents and interview relevant parties

The earlier the insurer is involved, the stronger your position in defending or settling a claim.

Two Key Dates Insurers Care About

1. Date of Incident – When the event happened (e.g., the day a customer slipped and fell in your store)
2. Date of Awareness – When you first became aware that the event might lead to a claim (e.g., when the injured customer tells you about the fall)

These dates can sometimes be months or even years apart. This is where prescription – the legal time limit to bring a claim – comes in. Once the prescription period has expired, legal action can no longer be taken.

If You Receive a Summons

Sometimes, the first time you hear of a claim is when a summons arrives. If this happens:

• Act immediately.
• Do not throw it in a drawer, ignore it in your email inbox, or discard it.
• Forward it promptly to the right person in your company, who should then send it to your broker, along with the date it was served.

The Bottom Line

A liability claim should be reported as soon as you become aware of an event that a reasonable person would believe may lead to a claim, not only once legal proceedings start.

To protect yourself:

• Familiarise yourself with your policy’s notification requirements
• Report potential claims right away
• Work with your broker and insurer to avoid delays or complications

Prompt reporting isn’t just good practice, it’s often the difference between a covered claim and an uninsured loss.

* This article is provided for informational purposes only and should not be construed as legal or financial advice.