You’ve got a client on the phone, voice tight: “We had an incident.Should I file a claim?”This is the moment that separates reactive service from trusted advisory.Report too little and you risk coverage disputes, missed deadlines, and angry renewals.

Report everything and you spike loss history, premiums, and carrier appetite.The play is judgment, speed, and documentation.Let’s cut through the noise.

Here’s how to know when to report immediately, when to hold and document, and how to protect both coverage and your client’s future pricing.First principle: coverage starts with notice Every policy requires notice of an occurrence that could lead to a claim, as soon as practicable.If a claim or suit is brought, the insured must send the legal papers immediately.

That initial notice triggers the claims lifecycle, adjuster assignment, and evidence preservation.Delayed notice risks denials and slows resolution. When reporting, include the essentials: policy number, who, what, when, where, how, and known witnesses or claimants.Clean intake saves days.  Why fast matters Speed changes outcomes.

Claims reported within 24 hours resolve up to 50 percent faster in our training data.Early notice tightens investigation, controls costs, and reduces friction.Prompt reporting is a performance edge, not just a policy condition.

When to report immediately If you see these, don’t wait.Get it in and document thoroughly.Bodily injury of any kindEven “no treatment at scene” injuries can evolve.

Early medical direction, recorded statements, and scene preservation reduce severity and protect defense rights.Third-party property damageIf your client might owe someone else for damage, liability is in play.Defense and indemnity hinge on timely notice.

Send any demand letters or emails to the carrier the moment they arrive.  Potential litigation or a demandAny letter with phrases like “hold you responsible,” “demand,” or “intent to sue” is a trigger.Forward immediately.Do not opine on liability.

Do not respond substantively without carrier guidance.  Statutory or crime-involved events Workers’ compensation injuriesState rules often impose strict reporting windows.Report promptly to protect benefits eligibility and avoid penalties.Early return-to-work planning reduces claim cost.

Water damage, fire, theft, cyber, or events that worsen with timeMitigate, document, report.The duty to protect property from further loss is real, and the carrier will reimburse reasonable emergency expenses.Preserve damaged property for inspection whenever possible.  When you can pause, document, and monitor There are legitimate times to hold off on a formal claim to protect loss history.

The key is disciplined documentation and an agreed game plan.First-party property under the deductibleIf the estimated repair is clearly below deductible and there’s no liability to others, you can document, get estimates, and proceed as an incident-only record in your AMS.Make sure the damage won’t worsen and that no third party is involved.

Keep photos, invoices, and notes.Minor auto fender-benders with no injuries and no third-party damageIf it’s truly cosmetic, self-contained, and below deductible, treat as an incident.Still coach the client to never admit fault and to collect photos and contact details.

If any new info surfaces, file immediately.Known maintenance or wear-and-tear issuesDamage from marring, scratching, chipping, or denting is often excluded unless caused by a sudden accidental impact outside the insured’s control.If it looks like pure wear-and-tear, a claim may not help.

Document internally and advise preventive fixes.  Contractual disputes without an alleged loss or negligenceIf the issue is purely “you didn’t deliver on time” with no property damage or bodily injury, coverage may not be triggered under GL.For professional services, check E&O.If no demand yet, log the incident and escalate if it turns into a claim.

Important: pausing does not mean ignoring.Set follow-up reminders, gather evidence, and decide fast if circumstances change.When NOT to self-pay quietly Good intentions can backfire.

Paying out-of-pocket or making promises to a third party can look like admitting liability and can compromise coverage.Policies allow reasonable emergency spend to mitigate loss, but straying beyond that can create problems.If others are involved or injuries exist, stop, document, and report.  Claims-made alert for professional liability With claims-made policies, the clock runs differently.

If you receive an allegation, demand, or become aware of a circumstance that could give rise to a claim, notice now protects coverage later.Waiting can forfeit rights at renewal.When in doubt on E&O, report.

Deductibles and strategy: the quiet math behind the decision Remember the tradeoff.Higher deductibles lower premium, but they also increase the chance you’ll handle small losses out of pocket.That is fine for first-party dings.

It is not fine for third-party injury or demand letters.The deductible is a cost-sharing tool, not a reason to avoid necessary reporting.Documentation discipline: your shield and leverage Whether you report now or hold as an incident, capture: Red flags that demand escalation today Role-by-role guidance you can use with your team Client talk track you can use today “Here’s our rule of thumb.

If someone is hurt, someone else’s property is damaged, or you’ve received any type of demand or legal notice, we file now.That preserves your coverage and your defense.If it’s truly under your deductible with no third party involved, we can document as an incident, monitor for 10 business days, and only file if facts change.

Either way, we’ll capture photos, statements, and costs so we can move fast.” FAQ quick hits Your next move Want me to tailor a simple one-page “Report Now vs.Hold and Document” checklist for your specific lines of business and carriers? Or do you want this blog adapted to your agency’s voice and market niche?