Liability Claims

If clients are at all unsure about what to do, please contact one of our liability (FinPro) claims team who can guide you.  But we recommend that:

• As soon as clients think there might be an issue that could give rise to a claim against them (or a claim by them on their insurance) either now or at some stage in the future - they should tell us straight away so we can notify insurers if necessary.  This includes situations where clients don't think they have done anything wrong, or don't know how things may develop.
  
  
• We ask for complete copies of any legal documents served on clients as soon as possible.  This is so that if there is coverage, lawyers can be appointed by insurers and a statement of defence prepared and filed within the 30 days normally allowed.
  
  
• Clients should not admit or comment on their potential liability, nor offer a settlement.  The insurer will want to be involved in these decisions if the client wishes insurance cover to be available. 
  
  
• It is usually best not to mention the existence of insurance or the involvement of insurers except for motor claims, or where law or regulation requires it.  For lawyer clients, there are disclosure obligations under the Lawyers and Conveyancers Act Rules.
  
  
• We will need full details of the background including copies of relevant documentation and correspondence.  We may ask clients to fill in the insurer's claim form, and can send them the forms they need.  Clients should keep us informed of developments and forward all correspondence received.
  
  
• Please ask before appointing lawyers.  If clients do not do this, insurers may refuse to meet the cost.  Insurers usually have the right to take over the conduct of the defence and can usually decide which lawyers will be appointed.  Insurers have their own panels of lawyers and may also have agreed special rates.  Occasionally, insurers may agree to the use of the client's chosen lawyers, but they will want to first check that lawyer's rates and relevant experience.