PI notification · UK
Notification vs claim — the distinction that matters
Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited (FCA FRN 724952) · Published 15 July 2026
A notification is a report of a circumstance that could give rise to a claim; a claim is a formal demand. The distinction matters — particularly at renewal.
The core distinction
Circumstance: an event or facts likely to give rise to a claim.
Notification: the insured reports the circumstance to insurers under the policy notification clause.
Claim: the third party formally demands compensation or issues proceedings.
Why the distinction matters
- Notified circumstances are 'locked in' to the current policy — the claim, when made, is treated under this policy's terms.
- Failure to notify a known circumstance can void cover for subsequent claims arising from it.
- At renewal, previously notified circumstances must be declared; insurers price accordingly.
- Aggregation clauses treat 'related claims' as one — notification protects the aggregation position.
What triggers a notification obligation
- Complaints in writing that suggest professional error.
- Aware of any material mistake or omission that could give rise to loss.
- Threats of legal action.
- Third-party requests for information that suggest a claim is pending.
- Regulator investigations relevant to advice given.
Practical guidance
- Notify anything on the borderline. The consequence of not notifying is worse than the consequence of notifying.
- Notify in writing, via the broker, with all relevant facts.
- Preserve the file completely.
- Do not communicate the notification to the potentially affected client without insurer consent.
- Follow up at renewal with a status update.
Frequently asked
Is every complaint a notifiable circumstance?
No — but any written complaint suggesting professional error probably is. If in doubt, notify.
What if I don't notify?
A subsequent claim from that circumstance may be uninsured. Insurers can decline cover for late notification.
Does notification affect my renewal terms?
Yes — insurers price notified circumstances into next renewal. But not notifying is much worse than notifying.
What if the client says they won't sue?
Client's intention today doesn't bind them tomorrow. Notify anyway if the circumstance is material.
What is 'related claims' treatment?
PI wordings typically treat claims arising from one act or a series of related acts as one for aggregation and limit purposes.
Does the FCA get involved?
Only where the circumstance is regulator-relevant. Most PI notifications don't require SUP 15.
Related
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 724952. Registered in England and Wales, company number 07014570.