In a recent case, the 7th Circuit appellate court said that the law firm failed to comply with its contractual notice requirement to the carrier. The law firm was required, as is true in most such contracts, to notify the carrier of a possible claim of negligence. The law firm said that notifying the carrier of every possible claim would delve it into minutiae and was unreasonable. The Court said the facts of this case suggest that any reasonable attorney should have known that a claim was likely … and therefore the firm owed a duty to the carrier to notify the carrier.
If you take the time and expend the funds to purchase insurance, you must review your contractual obligations of notice … otherwise you’re wasting your money and leaving yourself exposed to massive claims.