What is a claim, what is a circumstance and what is complaint? The distinctions are not always obvious and many people have difficulty knowing when they should notify a particular matter to insurers. 

A claim is defined quite broadly but includes “any demand for compensation or damages from, or an assertion of a right against, the insured”.

However, failure to notify properly or dealing with a matter by yourself can lead to serious problems, especially if you prejudice your insurer’s position. 

Generally speaking, you know when you have a claim. It’s a clear allegation against you/your practice demanding compensation. It may be in writing; it may not. You may be liable; you may not. What matters is that you do the right thing by your insurers to make sure cover is correctly triggered so they can start giving you the best defence possible.  

Do read your policy and if you are unsure of your obligations, seek advice from your broker or your insurers.You must notify insurers “as soon as possible”. This may be a less onerous term than “immediate notice” but you should not delay. Problems arise where delay in notification impacts on insurers’ ability to investigate and gather evidence in presenting a defence.