A formal claim is not always the first point at which an issue can have insurance consequences.
The Full Federal Court decision in UCA v Allianz provides an important reminder for organisations with claims-made insurance: early warning signs, internal investigations, complaints and other operational information may need to be considered from an insurance perspective well before a formal claim is received.
In our latest white paper, our specialists across the Claims and Health and Community teams unpack what the decision means in practice and the steps organisations can take to strengthen notification processes, governance and internal escalation.
The case in brief
The case concerned historical claims connected with Knox Grammar School and the availability of cover under claims-made liability policies issued by Allianz.
An internal investigation report received in 2004 contained information that might reasonably have given rise to future claims, but that information was not notified at the time.
The Full Federal Court found that the relevant awareness arose when the report was received, not only when subsequent claims were made. Because the information was not notified as soon as reasonably practicable, the insured could not rely on a later notification to obtain the benefit of section 40(3) of the Insurance Contracts Act 1984 (Cth) for the relevant claims.
The High Court subsequently dismissed an application for special leave to appeal, leaving the Full Court’s decision undisturbed.
What you'll learn
The white paper explores:
When circumstances may trigger notification considerations
Why timing and specificity of notifications matter
How knowledge can move across complex organisational structures
The importance of connecting operational risk information with insurance decision-making
A practical framework to help organisations identify, escalate, review and document potential insurance circumstances
Who should read this?
This white paper is particularly relevant for:
- Risk and Insurance Managers
- General Counsel and Legal teams
- Governance and Compliance leaders
- Safeguarding and complaints teams
- Senior executives responsible for organisational risk
- Organisations with complex structures and claims-made insurance programs
Download
Read Before a Claim Arrives to understand the key lessons from UCA v Allianz and how your organisation can strengthen its approach to identifying, escalating and managing potential insurance circumstances before a formal claim emerges.
Contents of this publication are provided for general information only. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. Lockton arranges the insurance and is not the insurer. Any insurance cover is subject to the terms, conditions and exclusions of the policy. For full details refer to the specific policy wordings and/or Product Disclosure Statements available from Lockton on request.
