Notification of claim
Category: Claims handling · Reviewed by the Apex broking team · Last reviewed 2026-08-21 · ~4 min read
Category: Claims handling
Also known as: claim notification, notice of claim, notification condition
Related concepts: date of notification, claim made
Definition
Every commercial policy contains a claims condition requiring the insured to give notice of matters that may lead to a claim under the policy. The condition will specify what must be notified, when, to whom and in what form. It is a contractual obligation, not a statutory one, so its scope and effect turn entirely on the words used.
Claims and circumstances
Two different things are usually notifiable. A claim is a demand made against the insured (in liability covers) or an event giving rise to loss (in property covers). A circumstance is something that has not yet become a claim but might: a complaint, an error discovered in work already delivered, an incident on site, a regulator’s enquiry. Liability wordings written on a claims-made basis almost always allow, and often require, notification of circumstances, and provide that a claim later arising from a notified circumstance is treated as having been made in the policy period in which the circumstance was notified. That deeming mechanism is what protects the insured when the claim itself arrives after the policy has expired.
The standard for a valid circumstance notification
How much the insured must know, and how specific the notice must be, was examined by the Court of Appeal in HLB Kidsons v Lloyd’s Underwriters [2008] EWCA Civ 1206. The court considered wording requiring notice of circumstances “which may give rise to a claim” and held that the threshold of awareness is a low one, but that the notice must convey the relevant information to the insurer clearly enough for the insurer to understand what is being notified. A vague or generalised notification, or one that leaves the insurer to work out what it is being told, risks being ineffective. Where the wording instead uses a higher threshold — “likely to give rise to a claim” is the common example — more is required before the duty bites.
Condition precedent or mere condition
The consequence of late or defective notification depends on the status of the clause. If the notification obligation is expressed as a condition precedent to the insurer’s liability, breach entitles the insurer to decline the claim outright. If it is a bare condition, the insurer’s remedy is damages for any loss the breach actually caused, which is often nil. English courts require clear words before treating a term as a condition precedent, and construe such clauses against the insurer where they are ambiguous.
Timing wording is construed in the same practical spirit. In Zurich Insurance plc v Maccaferri Ltd [2016] EWCA Civ 1302 a public liability policy required notice of any occurrence which may give rise to liability “as soon as possible”. The Court of Appeal held that the obligation was triggered only once the insured actually knew of an occurrence that might give rise to a claim, and that the insured was not under a continuing duty to keep assessing whether an incident had become likely to produce a claim. The decision limits how far an insurer can rely on hindsight to say notice was late.
Common wordings and what they mean
- “Immediately” — construed as with all reasonable speed in the circumstances, not literally instantaneously, but it leaves little room.
- “As soon as reasonably practicable” — the most common formulation; measured from the point the relevant person within the insured became aware.
- A fixed period, such as within 30 days or before expiry of the policy period — certain, and the easiest to breach by inattention.
- Manner and address — many wordings specify written notice to a named claims address. Telling the broker, or mentioning a matter in a renewal discussion, may not be notice under the policy.
Does the Insurance Act 2015 help?
Only marginally. Section 11 of the Act prevents an insurer relying on breach of a term designed to reduce the risk of loss of a particular kind, at a particular location or at a particular time, where the insured shows the breach could not have increased the risk of the loss that occurred. Claims notification conditions are generally understood not to be risk-reduction terms of that kind, because they do not affect the likelihood of the loss occurring. The practical protection therefore remains the ordinary rules of construction and the requirement for clear words to create a condition precedent.
Why it matters
Late notification is one of the most common reasons an otherwise good claim fails, and it is entirely avoidable. The two disciplines that prevent it are a standing internal instruction that anything that might become a claim goes to the broker the same week, and a deliberate sweep of open matters before each renewal so that anything doubtful is notified into the expiring policy year. The precise moment notice takes effect is dealt with in date of notification, and the trigger consequences in claim made.
Frequently asked questions
What is the difference between notifying a claim and notifying a circumstance?
A claim is a demand already made against you or a loss already suffered. A circumstance is something that has not yet become a claim but may do. Claims-made wordings usually let you notify circumstances so that any later claim attaches to the policy year in which you gave notice.
Can an insurer refuse a claim for late notification even if it suffered no prejudice?
Yes, where the notification obligation is a condition precedent to liability. If it is only a bare condition, the insurer's remedy is damages for the loss actually caused by the delay.
Is telling my broker the same as notifying insurers?
Not necessarily. Many wordings require written notice to a specified claims address. Tell your broker promptly, but check that a notice complying with the policy has actually been given.
Related entries
This entry is part of the Apex Insurance Wiki. Last reviewed 2026-08-21. Next review: 2027-02-21. It is general reference information about UK insurance law and market practice, not regulated advice on a specific policy.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.