Many professionals assume that mentioning a problem to their broker is the same as notifying their insurer. It is not always so. Whether notice to the broker counts as notice to the insurer depends on the policy wording and on the broker's role. Getting this wrong can mean an insured believes cover is protected when, in law, no valid notification has reached the insurer at all.
In the placing of insurance the broker generally acts as agent of the insured, not of the insurer. That is the ordinary position at common law. It follows that giving information to your own agent does not, without more, amount to giving notice to the counterparty. Unless the policy expressly provides that notice may be given to the broker, or the insurer has authorised the broker to receive notifications on its behalf, a communication that stops at the broker may not satisfy a notification condition directed at the insurer.
Notification clauses typically specify to whom notice must be given - often the insurer or a named claims-handling agent at a stated address or email. Where the clause names the insurer, the safe course is to ensure the notification actually reaches the insurer or its authorised claims handler, not merely the broker's file. A good broker will forward a notification to insurers promptly and confirm receipt, but the insured should understand that it is the notification to the insurer, evidenced and acknowledged, that engages cover.
None of this diminishes the value of involving the broker. The broker translates a firm's account of a problem into a notification that meets the policy requirements, sends it to the correct recipient, records the date and secures acknowledgement. For advisers and consultants, whose exposures can be technical and whose notifications need careful framing, that service is central. Our guides to IFA PI insurance and management consultants' PI insurance set out how these firms use their broker at the point of notification.
The practical rule is straightforward. Tell your broker, but make sure the broker forwards a compliant notification to the insurer and confirms it has been received - and keep the acknowledgement on file as evidence. Where time is short, or the policy names the insurer directly, notification should be sent to the insurer without delay and the broker copied. It is also good practice to notify in writing rather than by telephone alone, so that the date and content of the notice are beyond dispute, and to chase an acknowledgement if none arrives within a few days. Apex acts as the insured's agent, prepares the notification to the standard the wording requires, directs it to the correct recipient and keeps the audit trail that proves valid notice was given.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 724952. This entry is general information, not advice on any particular policy.