In a liability claim, three parties are on stage: the injured party, the business that caused the damage (the policyholder), and the insurer. It's worth understanding clearly how the claim travels to a decision – an orderly path is faster and less stressful for everyone. This article walks through the notification process from the policyholder's point of view.
- The injured party typically reports the claim to the party that caused the damage – the policyholder then passes it on to the insurer.
- During claims handling, the insurer also contacts the injured party directly – for inspection, discussion, and payment.
- The policyholder's most important task: a fast, complete, documented notification – and then letting the process run its course.
The path, step by step
The typical route: the injured party raises the claim with the business – verbally, in writing, or through a solicitor. The business documents the case (see first steps), then reports the claim to its own insurer, via the claims line or online portal, attaching the content of the claim and its own documentation. From there, the insurer takes over: it registers the case, carries out an inspection where needed, requests any missing documents, examines liability and the amount claimed – and, under the policy terms, settles a well-founded claim, typically paying the injured party directly.
What should you tell the injured party?
On site, and at first contact, the best line is simple and fair: “I'm reporting this to my insurer, and they will contact you as part of the claims handling process.” This isn't stonewalling – it's the orderly path, and it contains no admission of liability that could complicate claims handling. Tell the injured party that the claim has been reported, and give them the case reference once you have one – but leave the process itself to the insurer: you're on the policyholder's side of the table, and in practice, the orderly process tends to serve the injured party best too.
The policyholder's three tasks during the process
First: stay reachable – respond quickly to the insurer's questions, inspection scheduling, and requests for documents (see smart handling of document requests). Second: don't run a parallel track – negotiating separately with the injured party, or reaching a private settlement without involving the insurer, can put your cover at risk (see settlement questions). Third: record the lessons learned – what led to the claim, and what's worth doing differently (see loss prevention).
If the path gets stuck
Even an orderly path can get stuck: a case that stalls for months, an unclear explanation, positions that won't move closer together. That's when the broker steps in: I help the client find their way – I ask questions, and liaise with the insurer, where I can – that's the subject of the article on stuck and disputed cases. The goal is always the same: steering the case back onto an orderly track.
Example: the impatient claimant
The day after a shop window breaks, the injured shop manager calls the painter daily: when will he get paid? With the best of intentions, the painter nearly makes a mistake – he's on the verge of paying out of pocket, just to “get it over with.” Instead, he chooses the orderly path: he confirms in writing that the case has been reported, provides the case reference, and lets the manager know the insurer will be in touch as part of claims handling. The insurer carries out an inspection within two weeks, and the case is resolved. Had he paid out of pocket, his cover could have become questionable (a settlement made without the insurer), the amount would have stayed disputed, and he would have set a precedent. The injured party's impatience is understandable – but the answer to it is an orderly process, not cash in hand.
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