Liability claims generate strong emotions, such as guilt for overlooking a detail, frustration over the financial cost or anxiety about how to handle telling the client. When you find yourself facing a claim, there are two things that help make the process go more smoothly.
1. Call Your Insurance Provider
The first thing you need to do when you receive notice of an error or a potential claim issue is to call your professional liability insurance provider. Signs that you need to contact your provider include:
- A demand letter
- An emailed complaint
- Threatening phone call
- Request for professional liability policy information
Your policy details will determine how much protection you receive, but for claims that originate before your current policy went into effect, you need accountant prior acts coverage.
2. Gather Your Documentation
Your insurance provider will asl for documentation related to the details of the claim, but you can start gathering your records as soon as you realize a claim could be imminent. Don’t hold back on records. Unfortunately, for claims relying on accountant prior acts coverage, you may have a harder time finding records that go years back.
Whether you feel the lawsuit is frivolous or valid, always comply with your provider’s requests for information. You need to work closely with your insurance provider and legal team to navigate the lawsuit.