{"id":903910,"date":"2025-02-04T16:05:42","date_gmt":"2025-02-04T23:05:42","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903910"},"modified":"2025-02-04T16:07:57","modified_gmt":"2025-02-04T23:07:57","slug":"written-notice-what-to-do-with-potential-claim","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/written-notice-what-to-do-with-potential-claim\/","title":{"rendered":"What to Do When Faced With a Potential Claim Under Your D&O Insurance Policy"},"content":{"rendered":"\n

Jacquelyn Burke, Cecelia Lockner, Carl Metzger, Brian Mukherjee and George Schneider | Goodwin<\/a><\/p>\n\n\n\n

When in Doubt, Notice the Claim!<\/h4>\n\n\n\n

As a general matter, coverage under a D&O insurance policy may be triggered by receipt of any written notice<\/a> alleging a so-called wrongful act. Even a counterclaim in a lawsuit in which you are the plaintiff qualifies as a claim. Notice provisions do vary from policy to policy, and it is important to be aware of the specific requirements of your policy. That said, if you receive anything in writing alleging that your company or one of its directors, officers, or employees may have behaved improperly (even in an email, for example) and regardless of the perceived merit of the allegation, always make sure to provide prompt notice of the matter under your policy. Along those lines, be aware of the renewal dates of your policy so you have time to put in any notice before the policy expires.<\/p>\n\n\n\n

If you are unsure about whether notice is warranted, reach out to your insurance broker or outside counsel to evaluate the matter. But when in doubt, consider noticing the claim. Failure to provide a timely claim may lead an insurer to deny coverage for the claim (and even other future claims that have some relationship to the claim that was not noticed). Remember that coverage for individuals can be broader than coverage for the entity.<\/p>\n\n\n\n

Before Engaging Defense Counsel \u2026 Check, Check, and Check Again<\/h4>\n\n\n\n

Be sure to check your policy before<\/em> engaging defense counsel. Typical defense provisions in policies may require insurer preapproval of the insured\u2019s choice of counsel (sometimes at rates that are less than the full rates the firm typically charges) or to use one of the insurer\u2019s panel counsel law firms (\u201cduty to defend\u201d coverage). Further, in certain situations in which a duty to defend exists, the insurer may nonetheless be required by law to appoint \u201cindependent\u201d defense counsel for the insured\u2019s benefit; outside counsel should be consulted to determine whether a right to independent counsel exists.<\/p>\n\n\n\n

Failure to understand and adhere to your policy\u2019s defense provision may result in at least one of the following:<\/p>\n\n\n\n