Extenuating Situation When Reporting a Loss

August 6, 2013

We have a major homeowner loss where the owner was out of the country when the fire rendered the home a total loss. Her agent (who also happened to be out of the country on his own vacation) was made aware of the loss 2 days later and notified the homeowner. He did not, however, notify the carrier. The carrier was not aware of the claim until our office was involved 14 days later. The carrier has sent letters alluding to the verbiage regarding the “Duties after Loss” – which of course involves notifying the carrier in a timely fashion. Doesn't that fall on the direct writer agent and his E & O? How could the carrier deny the claim when its own agent didn't report it?