01 / The meaning
What it means.
The claimant may allege injury, property damage or financial loss, depending on the circumstances. A demand can arise before court proceedings and may be relevant to notification provisions. The precise policy definition of claim matters: a written complaint, regulatory proceeding or request for compensation can receive different treatment under different covers. Do not wait for an allegation to be proven before reviewing notification requirements.
Liability insurance may address defence and indemnity for a covered allegation, but it does not establish that the claimant is right or that every demanded amount is payable. Keep the original communication, contracts and incident records. Check the insurer’s requirements before admitting fault, agreeing compensation or engaging legal advisers, while ensuring any court or response deadline is addressed promptly.
02 / Put it in context
A practical example.
Hypothetical example: a client emails a consultant seeking $70,000 for alleged errors in a report. The consultant preserves the email and engagement documents and notifies its broker. The demand remains an allegation while liability and policy response are assessed.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Record when the demand arrived and what remedy the claimant seeks.
- Check the policy’s claim definition, notification method and timing requirements.
- Preserve contracts and correspondence and obtain guidance before admissions or settlement.
04 / Start a useful conversation
A question for your broker.
Does this communication meet our policy’s definition of a claim, and what must we do now to preserve our position?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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