No one is safe from a professional liability lawsuit. The causes are varied and the resulting consequences are numerous.
What is a claim?
A claim is any verbal or written request received by an insured (broker and/or agency) for monetary compensation ($) or any fact or circumstance that could reasonably lead to a demand for monetary compensation pertaining to damage covered under this policy.
Remember that if you receive an email, a call, a formal demand or any proceedings suggesting that you are liable for damage due to a fault, error or omission in the course of your professional activities, it is essential that you discuss the matter with your agency executive officer and report it to FARCIQ.
What are my obligations in the event of a claim?
The Insured must report the claim to FARCIQ as soon as possible while the policy is in force. To do so, the insured may use the Declaration of the insured form. If you use the form and the information you need to share with us requires more space than expected, you may use the Annex form.
The Insured must also cooperate with FARCIQ at all times, either by:
– immediately sending a copy of any notices, formal demands and proceedings pertaining to the claim;
– cooperating with FARCIQ in investigating, settling or defending the claim;
– sending all required records and information.
Upon the Insurer’s request, the Insured must assist the Insurer in exercising any recourse against any third party responsible for the damage.
What should I do if I receive a claim?
Contact the Fonds d’assurance at the following address email@example.com to inform us of the situation. A delay of notice can make you lose the benefits of your protection.
Although it is sometimes tempting to settle the situation amicably, do not admit your liability or incur costs. With the support of FARCIQ, you will receive advice adapted to your situation.
If you wish to report an actual or potential claim, be sure to send us the following information:
– A description of the problem or allegations brought against you and the amount claimed;
– The address of the building concerned;
– Name of the person(s) who may file a claim;
– And your complete contact information.
Please email this information and any written documents (formal demands, emails, proceedings, etc.) related to the claim to firstname.lastname@example.org. A FARCIQ analyst will normally contact you within 48 hours.
A form is put at your disposal to make this process easier. You can access it by clicking on this link. If you use the form and the information you need to share with us requires more space than expected, you may use the Annex form.
Don’t admit liability or incur any costs, without your Insurer’s prior authorization. Remember that a committed fault does not necessarily incur your professional liability. In the event of a claim, notify FARCIQ immediately so that a member of our team can inform you of the various options available and the risks associated with your file.
In case of a claim, who is responsible for notifying FARCIQ?
You must notify FARCIQ immediately as any delay or failure to notify the Insurance Fund can make you lose the benefits of your coverage. To do this, you can fill out the Declaration of the insured form designed for this purpose and email it to us at email@example.com, along with any other supporting documents related to the claim.
In addition, although it may sometimes be tempting to reach an amicable settlement without informing FARCIQ, note that the risks associated with this approach are high . In case of a claim, no Insured shall voluntarily make a payment, assume any obligation, admit liability or incur any costs, without FARCIQ’s authorization.
With the support of FARCIQ, you will receive advice adapted to your situation.
Does the Insured have a deductible to pay?
What should I do in the event of proceedings before the courts?
Court of Quebec, Small Claims Division
Since January 1, 2015, the Small Claims Divisionhears cases in which the amount in dispute does not exceed $15,000. In the event of legal action before the courts, FARCIQ will be able to advise and assist you, depending on your insurance coverage, both in the preparation of your defence and for the hearing. You will have to make the representations alone at the hearing since the law prohibits any representation by a lawyer before this court. You will, however, be supported by us.
We encourage you to download the Practical Guide to Small Claims Court Claims to learn more about this topic.
Court of Quebec and Superior Court
In the case of claims submitted to the Court of Québec or the Superior Court, the Insurance Fund (FARCIQ) mandates lawyers specialized in professional liability to defend you according to the terms and conditions of the applicable insurance policy. FARCIQ will follow up on the case.
Does the Insured have a deductible to pay?
When a settlement is reached or if the Insured is found responsible following a Court decision, FARCIQ has the right to obtain payment of the applicable deductible. The amount of the deductible and the terms of reimbursement are provided for in the insurance policy.
What are the consequences of a claim?
There are many consequences of a claim or dispute before the courts, including damage to your reputation, loss of time, stress and costs, especially the payment of your deductible if you are found liable.
Be aware that court proceedings and judgments are public and accessible. Prevention is an important key in your profession and prevention could save you a lot of trouble.
- Latent defects
- Instructions of client not followed
- Septic systems
- Square footage miscalculation
- False representations
- Mould, pollutants
- Pre-purchase inspection
- Cancellation of transaction