POTENTIAL E&O CLAIM Should I report it to my E&O carrier? By Brian Snyder
T
he decision to report a potential claim to one’s professional liability carrier brings a host of issues to consider:
What effect does reporting a potential claim have on my brokerage’s loss history?
26 The Alberta Broker February-March 2022
How will it affect my brokerage’s premium? It’s just a potential claim, so what difference can it make? My customer has not hired an attorney or filed a lawsuit against my brokerage. Am I only creating trouble for my brokerage by reporting this potential claim?
The best source for these questions is the brokerage’s professional liability policy, which requires that a brokerage report potential claims to its carrier. But apart from that, there are additional, common-sense reasons for doing so. The following example illustrates those reasons.
