What is the primary function of a notice of claim?

The primary function of a notice of claim is to communicate a claim initiation to the insurer. This document serves as a formal indication that the policyholder is seeking compensation or benefits under their insurance policy for a loss or damage that has occurred. By submitting a notice of claim, the insured notifies the insurance company of the details surrounding the incident, allowing the insurer to begin their investigation and processing of the claim.

This communication is critical as it establishes the framework for the claims process, ensuring that all parties are aware of the claim's existence and can start gathering necessary information and evidence. It also outlines the responsibilities of the insured and the insurer during this process. Thus, the notice of claim acts as the first step in navigating the often complex claims landscape, ultimately leading to the resolution of the claim.