September 29, 2015
Suit Or Claim? What Is Your Business Facing?
Differences Between A Suit And A Claim
When you file a claim to your insurance company, it is to get the payout that your policy provides. However, do you know if you should be filing or claim or a suit? While it may not seem like a big deal, the specific words that are used on your insurance policies dictate exactly what you can and cannot receive the benefits from.
With a claims-made policy, there are two requirements you must meet in order to get the insurance benefits, which include:
- Your policy must be in force at the time that the claim is filed.
- Your policy must be in force at the time of the incident from which the claim was filed.
It is important to keep in mind that a filed insurance claim does not have to be a lawsuit against your company for the claims-made coverage to apply. The policyholder may only have to receive a demand letter in order to make them responsible for the losses.
When it comes to claims-made insurance coverage there are major differences between a claim and a suit. The main differences between the two include:
- A claim is any kind of notice that the policymaker may liable for certain damages that can be covered by the policy. Once the policyholder is informed of a mistake, it can lead to a lawsuit, which is a claim.
- A suit is the formal lawsuit that is filed against the policyholder. It can still be considered a claim if it is the first notice that has ever been received from the injured party that you may be held liable for certain damages.
Contact Brewer-Lloyd Insurance Agency in Mesa, Arizona for all of your commercial insurance needs. We will help you find the right insurance policies that will best fit your needs, no matter if you are facing a suit or a claim situation.