What is a liability claim?
Broadly speaking, liability claims are where a third party has alleged some action or inaction which has caused a detrimental outcome, either legally or financially.
What can this look like?
- Government agencies could pursue you for breach of regulation or legislation.
- A person may have injured themselves on your property and are seeking compensation for things like medical costs and time off work.
- It could be that someone has relied on some advice you have provided, and a negative outcome (actual or alleged) has occurred as a result.
What are you likely to receive that lets you know you may have a liability claim?
- A writ from the courts – more often than not this will be a Statement of Claim.
- Tribunal Documents – these will be similar to those from the courts.
- Letter of Demand – this is a fairly standard letter which will outline what they say has caused their negative outcome and what they expect as a remedy.
- Anything in writing – a text or email which alleges wrongdoing can also be considered.
What do you need to do?
As soon you receive anything, you should contact us so we can provide further advice as you may have a policy that will provide cover.
What are the implications for not advising us as soon as possible?
If a matter progresses significantly before we notify your insurer, they will state their position has been prejudiced. This could mean they may try to avoid covering the claim or they may only provide cover for a certain amount of costs you have incurred to date, and this could leave you substantially out of pocket.
Also, insurers often have specialist law firms familiar with legislation/regulation, particularly around insurance claims. This means they are often more able to attend to addressing the claim more effectively, usually meaning a better defense at reduced costs.