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📬 '''Notification requirement''' refers to a contractual or regulatory obligation that mandates a party to an [[Definition:Insurance policy | insurance]] or [[Definition:Reinsurance | reinsurance]] contract to provide timely notice of specified events — most critically, the occurrence of a [[Definition:Loss | loss]], a [[Definition:Circumstance | circumstance]] that might give rise to a [[Definition:Claim | claim]], or a material change in risk. These requirements appear in virtually every class of insurance and are a fundamental feature of both [[Definition:Claims-made policy | claims-made]] and [[Definition:Occurrence policy | occurrence-based]] policy forms. The precise formulation — whether notice must be given "as soon as practicable," "promptly," or within a fixed number of days — varies by market, line of business, and applicable law, and it often determines whether coverage will respond.

⚙️ In [[Definition:Claims-made policy | claims-made]] policies, the notification requirement takes on heightened significance because coverage hinges on the claim or circumstance being reported to the insurer within the [[Definition:Policy period | policy period]] or any applicable [[Definition:Extended reporting period | extended reporting period]]. Late notification can result in outright denial of the claim, making compliance a matter of existential importance for the insured. Under [[Definition:Occurrence policy | occurrence-based]] forms, late notice is less likely to be a complete coverage bar, but insurers may argue [[Definition:Prejudice | prejudice]] — that the delay impaired their ability to investigate or mitigate the loss. Jurisdictions differ markedly on this point: some U.S. states have adopted a "notice-prejudice" rule requiring the insurer to demonstrate actual harm before denying a late-reported claim, while English law has traditionally taken a stricter approach, though the [[Definition:Insurance Act 2015 | Insurance Act 2015]] introduced more nuanced remedies. In [[Definition:Reinsurance | reinsurance]] contracts, notification requirements also govern the [[Definition:Cedant | cedant's]] duty to advise the reinsurer of losses approaching the [[Definition:Attachment point | attachment point]] or of circumstances likely to result in a [[Definition:Recovery | recovery]].

🔑 For insurers and [[Definition:Reinsurer | reinsurers]] alike, the notification requirement is not mere administrative formality — it is the trigger for the entire [[Definition:Claims management | claims management]] process. Early notice enables prompt investigation, evidence preservation, and engagement of [[Definition:Loss adjuster | loss adjusters]] or defense counsel, all of which can significantly influence the ultimate cost of a claim. From the insured's perspective, understanding and complying with notification requirements is one of the most consequential post-placement obligations, particularly in complex lines such as [[Definition:Directors and officers liability insurance (D&O) | D&O]], [[Definition:Professional indemnity insurance | professional indemnity]], and [[Definition:Cyber insurance | cyber insurance]] where the boundary between a reportable circumstance and a non-event can be ambiguous. Insurers that invest in clear communication of notification obligations — and in digital tools that make reporting easier — tend to see better claims outcomes and fewer coverage disputes.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Claims-made policy]]
* [[Definition:Occurrence policy]]
* [[Definition:Extended reporting period]]
* [[Definition:Late notification]]
* [[Definition:Condition precedent]]
* [[Definition:Claims management]]
{{Div col end}}

Definition:Notification requirement - Revision history

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