There is no easy way to go about it. When a client or incident with a client threatens your firm, filing a claim is a necessary process between you and your insurance provider. It is often stressful and drawn-out, but it doesn't always have to be. By following the general steps below, while keeping in constant contact with your provider, you can reduce the amount of stress on both your firm and yourself.

1. Notify the Carrier

The first priority of filing a claim is simple: Notify Your Carrier. If you or someone in your firm believes they might have a claim or potential claim to report, it is important to check your policy for the carrier's definition of a claim. The word "claim", when it comes to insurance, is a broad term. It can range from a threat to sue or being served papers. If an event like this occurs, and you or an associate believes it may constitute a claim, it is advisable to notify your carrier as soon as possible in conjunction with the rules of the policy. In order to be safe, be sure to report all potential claims, before any claim-triggering event occurs.

2. Gather all Records Significant to the Claim

When contacting your provider and filing the claim provide a brief description of the claim including the potential damages, estimated to the best of your ability.  Send this along with any papers you may have received or emails regarding the threat of a claim.  Gathering all the pertinent records surrounding the claim is necessary. Even if the pieces of information are small or questionable in terms of significance, it is a good idea to provide them to your carrier. There is no such thing as too much information when it comes to filing a claim.

3. Compile Additional Information Related to the Claim

The next step in the claim reporting process is to compile all information about the event or incident that surrounds the claim from all affiliated parties. A good way to do this is to have all employees that are directly related to the client and incident record all the information they remember about the incident(s) that the claim is based on.  All of this information is to be compiled and sent to the insurance carrier. 

4. Send Requested Information to Carrier

After all that information is sent to the carrier, it is likely that the carrier will ask for specific additional information that was not sent before. This is sometimes the most frustrating part of filing a claim, but it is necessary in order for the carrier to provide you the best defense and/or settle the claim as quickly as possible. A key thing to remember during this time is that the carrier is on your side, and they (like you) are trying their best to do their due diligence. Like we stated before, filing a claim can be stressful. Protexure is here to help and we hope these steps help you and your practice along the way. If you are a small CPA firm, visit our website or call us at (888) 803-9898 for a quick, free quote on Liability Insurance for your firm. Also, be sure to visit us on Facebook, Follow us on Twitter, and of course keep up to date with our WordPress Blog!