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📋 '''Notice''' in insurance refers to the formal communication that a [[Definition:Policyholder | policyholder]], [[Definition:Insured | insured]], or third party is required to provide to an [[Definition:Insurance carrier | insurer]] to inform it of a relevant event — most commonly a [[Definition:Loss | loss]], a potential [[Definition:Claim | claim]], or a change in the risk being covered. Notice obligations are embedded in virtually every [[Definition:Insurance policy | insurance policy]] and serve as a foundational element of the contractual relationship between the insured and the insurer. The specific requirements — including the timing, form, and content of notice — vary by policy type, jurisdiction, and line of business, but the underlying principle is consistent across global markets: the insurer must be informed promptly enough to investigate, assess, and manage its exposure.

⚙️ Most policies contain a "notice condition" or "duties after loss" clause that specifies when and how the insured must notify the insurer. In [[Definition:Claims-made policy | claims-made]] coverages — common in [[Definition:Professional liability insurance | professional liability]] and [[Definition:Directors and officers insurance (D&O) | D&O insurance]] — the timing of notice is particularly critical because coverage is typically triggered only if the claim is both made against the insured and reported to the insurer within the [[Definition:Policy period | policy period]] or an applicable [[Definition:Extended reporting period | extended reporting period]]. Under [[Definition:Occurrence-based policy | occurrence-based]] policies, late notice may not automatically bar coverage, but it can give the insurer grounds to deny or reduce a claim if the delay materially prejudices its ability to investigate or defend. Jurisdictions differ on how strictly late-notice defenses are enforced: some U.S. states require the insurer to demonstrate actual prejudice, while English law and many civil-law systems may permit denial based on breach of condition alone.

💡 Getting notice right has outsized practical importance for all parties in the insurance chain — from individual insureds to [[Definition:Broker | brokers]], [[Definition:Managing general agent (MGA) | MGAs]], and [[Definition:Reinsurer | reinsurers]]. In [[Definition:Reinsurance | reinsurance]] contracts, notice-of-loss provisions determine when the [[Definition:Cedent | cedent]] must inform the reinsurer and can affect the reinsurer's liability, particularly in [[Definition:Facultative reinsurance | facultative]] placements. Failure to provide timely notice is among the most litigated issues in insurance law globally, and it frequently surfaces in complex or latent-injury claims such as [[Definition:Asbestos liability | asbestos]], environmental contamination, and [[Definition:Cyber insurance | cyber]] incidents where the insured may not immediately recognize that an event triggers coverage. For this reason, [[Definition:Risk management | risk management]] best practice — and the advice that sophisticated brokers consistently give their clients — is to notify early and broadly, even when the ultimate scope of a loss remains uncertain.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Notice of circumstances]]
* [[Definition:Claims-made policy]]
* [[Definition:Occurrence-based policy]]
* [[Definition:Duty of disclosure]]
* [[Definition:Extended reporting period]]
* [[Definition:Claim]]
{{Div col end}}

Definition:Notice - Revision history

PlumBot: Bot: Creating new article from JSON