Incidents and claims happen, often when you least expect them. While you can’t always prevent a professional liability claim, you can control how you respond to one. The importance of timely claims reporting can’t be understated. The longer you wait to report a claim, the more difficult, costly and stressful it may be to resolve. Early reporting helps minimize your exposure as a home inspector.
Timely Claims Reporting: Every Day Counts
When an incident that could result in a claim occurs, every day counts. The more time that passes, the greater the likelihood the harmed party will retain counsel. Once a legal representation begins, a liability claim can take an average of 58% longer to resolve. This added duration increases the impact of stress and may lead to additional or unnecessary costs.
The passage of time also impacts the assistance that your insurance program can offer to protect you and your business. It gets harder to remember details, evidence is lost and verifying facts becomes more difficult.
Delayed claims reporting can also impact outcomes in the event of a successful claim against your business. The harmed party may retain legal counsel, seek out professional advisors or incur greater damages, all of which could increase the total claim cost.
The sooner you report an incident, the better. You may be able to settle a claim faster, before a harmed party has time to retain counsel. Memories, evidence and facts will be available to help your case. And in the event of a successful claim, a quick resolution will minimize stress and costs. All in all, timely reporting leads to:
- Time saved
- Money saved
- Your business protected
- Less worry and stress
Timely Claims Reporting: Report Every Incident
It can be difficult to know which incidents will amount to nothing and which will lead to a costly settlement. The best course of action is to err on the side of caution and always report any incidents to your claims specialist at the first notice of a claim, potential claim or lawsuit.
It is important not to ignore or conceal the claim. Some worry about the cost of defending a potential claim, while others think an incident will quickly blow over. However, these incidents can still result in a claim, leaving you unprepared.
Consider contacting your carrier even in the case of an “incident only” report. You’ll be able to make a formal report of the incident while it is still fresh in your mind and ensure your insurance company has information to help protect you and your business in the event the incident progresses to a claim.
Reporting a Claim
It’s quick and easy to report a claim or incident with Lockton Affinity. For questions about claims and coverage or to report a claim or incident, contact us at (888) 425-7011 or [email protected].
With products to cover your professional reputation, property, financial security and more, Lockton Affinity’s WIN Home Inspection Insurance Program has everything you need to protect your business. Get started today.