Before discussing how to report a claim, you must know exactly what it is you need to report. That's why it is important to understand the definition of a claim contained in the CNA professional liability policy issued for Accountants.
A “claim” is defined in the policy as "a demand received by you for money or services naming you and alleging an act or omission, including personal injury or advertising injury, in the rendering of professional services. A demand shall include the service of suit or the institution of arbitration proceedings against you."
A claim could be any of the following:
- A summons and complaint alleging an act or omission in the rendering of professional services.
- A letter or verbal threat or demand for services or money from you alleging acts or omissions arising from professional services you provided.
- Notice of arbitration filed against you for alleged damages arising from your professional services.
If you are in doubt whether a claim has been made against you ― REPORT IT.
Once you receive a claim, you should do the following:
- Provide CNA with written notice as soon as you are aware of a claim, potential claim, regulatory inquiry, subpoena for records or testimony, or any circumstance which you reasonably expect may be the basis for a claim.
- As soon as possible, send copies of all records, correspondence, etc. to CNA and to any other insurance carrier that may provide coverage for the claim, potential claim, regulatory inquiry, subpoena for records or testimony, or any circumstance which you reasonably expect may be the basis for a claim.
- In your written notice to CNA, identify your policy number, firm name, telephone number and name of the individual we should contact within your office, date you received the claim, regulatory inquiry, subpoena for records or testimony or the threat of a potential claim or circumstance which you reasonably expect may be the basis for a claim, the claimant’s name, and a brief description of the services you rendered for the client.
- All of the above can be e-mailed to: firstname.lastname@example.org
Remember, the sooner you give notice, the sooner we can take action. In addition, make sure you take the following important steps throughout the claim process:
- Refrain from signing or accepting any release from any party without obtaining approval from your CNA claim professional.
- Avoid discussing, commenting upon, or taking issue with any information you receive regarding judicial or administrative proceedings.
- Be sure you do not admit liability, consent to any arbitration or judgment, or agree to any settlement without CNA's prior written consent.
- Be prepared to spend time with counsel and your CNA claim professional to aid in the investigation, defense, and settlement of your claim.