Policy conditions: are you aware of them and the detrimental consequences they can have if not met?

Upon notification of a new loss to insurers, the first thing they will likely do is look to validate cover, this includes ensuring that their policyholder has met all the relevant policy conditions, therefore meaning that it is of upmost importance that you are aware and understand all conditions stipulated within your policy; having a clear understanding of such will aid your position and hopefully ensure that the claim is not denied by insurers, leaving you in possible financial difficulty.

A distinct condition we see challenged often is the “The Claims Notification - How to make a claim” condition whereby a typical wording may state the following: 

“You must comply with the following Conditions Precedent. If You fail to do so, We may not pay Your claim, or any payment could be reduced “For first notification of a claim or an event which could give rise to a claim please contact as soon as practicable giving full details of what has happened”

In the example given it states: “first notification of a claim which could give rise to a claim”, other wordings may stipulate a time frame, perhaps 30 days, 14 days or even 3 days, therefore, it is vital that insurers are made aware of an event that may or has given rise to a claim, as per policy conditions; this will allow investigations to be made, policy cover validated and any valid claim progressed to settlement promptly.

As your trusted broker, here at BQI we are on hand to guide you through the process and when it’s imperative to notify an incident. When an incident occurs, please contact us without delay and we will happily assist. 

#Insurance #Insurance Brokers #Claims