AE Blog - Professional Liability Insurance Claim Process
When the call comes from your client that they are considering filing a professional liability claim against your firm, the first question will likely be “How is this going to work?” The answer will depend on whether or not your client has a formal published professional liability (E&O) claims process. John Lowe recommends that when a claim is mentioned by the client, you should ask for your client’s published process. Some will have a formal process, many will not. If the client has a formal claims process, they should provide that to you so that you will know how to prepare your response to the claim. If no formal claims process is available, you may have an opportunity to provide some guidance to your client regarding how to proceed managing the claim. After all, neither you or your client want to have to deal with a claim and both want it to be dealt with quickly and fairly.
Here are the basic elements of a formal claims process as contained in the Oregon Department of Transportation’s claims process, which can be accessed at the following link:
- Objective – Work together to minimize effects of E&O Issue (Problem)
- Provide oral and written notice – Letter of Concern (LOC)
- Consultant provides Agency-requested documents
- If Consultant believes it is entitled to additional compensation, Consultant provides Consultant LOC within 7 days
- Agency Contract Administrator (CA) and Consultant meet to discuss how to mitigate the problem
- If unable to resolve the problem, CA requests that Chief Engineer initiate an internal review
- Chief Engineer determines whether Standard of Care has been met
- If Standard of Care not met, Agency pursues Cost Evaluation and Recovery. When applicable, Agency provides LOC stating that it believes that Consultant’s work is not within Standard of Care
This process should be customized to fit your particular situation.
The information above was provided to Hall & Company by John Lowe, Lowe Consulting,LLC. To learn more about the services provided by Lowe Consulting, LLC, please visit his website. For new customers John also has an Introductory Offer at the Hall and Company website.