We like to tell what we call “cautionary tales” and advise clients, including law firms, that it is better to advise the insurance company of the potential for claim than to try and hope that there won’t be a claim when there is knowledge that there might be one. Keeping the insurance company on notice of the potential for a claim has no down side – not advising the insurance company has potentially serious consequences, i.e. the loss of the coverage.
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