When a loss event occurs, attention naturally turns to the claim itself, with the numbers, the disruption and the path to recovery all analysed. But long before a claim is agreed, or in some cases disputed, there is another moment that can shape the eventual outcome significantly. Often treated as a formality, in reality, notification is anything but.
Following a recent training session with Fenchurch Law, specialists in representing policyholders in complex insurance disputes, Consilium’s Claims team took a closer look at how notification can become one of the most contested and consequential parts of the claims process.
More Than A Submission Form
Notification is not a box-ticking exercise. For claims brokers, simply passing information from client to insurer is not enough. The role is far more active. It requires stepping back, understanding all the issues in context and asking a bigger question: is this an isolated incident or part of something wider?
In some cases, what appears to be a single issue may point to a broader, systemic exposure. To prevent potential future claims from slipping through the cracks, a more comprehensive 'block notification' of circumstances may be necessary to capture them early, and in full.
The detail matters just as much as the intent. The framing of a notification, the language used and the timing relative to policy requirements all influence how it is received, and more importantly, accepted by the insurer.
Describing a ‘circumstance’ as a remote possibility, for example, may not meet a policy notification threshold that requires an event to be ‘likely’ to give rise to a claim - a subtle difference, but one with significant implications.
The Grey Areas Matter
Notification is rarely black and white. Insurers may, at times, challenge whether an issue was reported promptly or correctly. However, as highlighted in the session, case law has consistently recognised that these decisions are often made in real time, without the benefit of hindsight.
Policyholders should not be penalised for making reasonable judgement calls based on what they knew at the time, nor should they be second-guessed later when circumstances have developed further.
Understanding where those ‘grey areas’ exist, and how they are interpreted, can be critical in protecting a policyholder’s position when a claim arises.
Avoiding the Gap No One Sees Coming
For placing brokers, the challenge often sits elsewhere - in the transition between policies. One of the most important risks to manage is asymmetry, where there is a mismatch between what can be notified under the current policy and what is excluded under the following year’s policy.
This can happen when insurers change or when policy wordings change at renewal. Without careful alignment, a policyholder can find themselves in a difficult position where neither the expiring nor the new insurer accepts responsibility for a claim.
It is a gap that is easy to overlook, but potentially costly when it emerges. The solution lies in careful scrutiny of how pre-existing circumstances are treated. Ideally, related exclusions should be limited to matters already notified, or better still, those formally accepted, under the previous policy.
Equally, attempts by the insurer to restrict broader, block notifications through policy wording should be approached with care and challenged through negotiation wherever possible.
Advocacy, Backed by the Right Expertise
When disputes do arise, specialist legal expertise can play a defining role. Fenchurch Law operates solely on behalf of policyholders, bringing a focused approach to resolving coverage disputes and ensuring claims are properly understood, presented and defended. In complex or contested scenarios, that external perspective can be a powerful addition to the claims team.
At Consilium, a collaborative approach is central to handling claims, ensuring the claim is positioned correctly from the very beginning. Early involvement, clear strategy and access to the right expertise, whether internal or external, all contribute to better claim outcomes.
What this session reinforced is that some of the most important decisions in a claim happen long before a loss is quantified or a settlement is even considered. Notification sits at the centre of that. Handled well, it protects the policyholder’s position and keeps options open. Handled poorly, it can create problems that can be both difficult, and expensive to recover from.
For brokers and policyholders alike, the message is clear. Take the time to understand the details, challenge assumptions and approach notification with the same level of care as the claim itself, because when the moment comes, a successful outcome can hinge on how things were communicated from the very beginning.
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