The other day I got a phone call from one of our clients, asking a two part question. They wanted to know what a potential claim was and two, should they actually report that potential claim to their carrier.
First of all, what is a POTENTIAL CLAIM?
A potential claim is any kind of act, error or omission that you believe might give rise to a claim…and YES, they should be reported to the carrier right away. It is a condition under the policy to trigger coverage that all potential claims need to be reported to the carrier as soon as you become aware of them.
A common misconception that I hear from our clients about reporting potential claims is, “Hey, if I report a potential claim, it will make my premium increase.”
This could not be further from the truth. The mere reporting of a potential claim will not impact your premium come renewal time. Also, if you are an INF insured, all claim reporting material can be found at our website, www.integrityfirstins.biz.
Thank you very much.