1. Insurance Terms & Definitions/
  2. Insurance Terms Starting With C


What is a Circumstance?

A circumstance is a situation or event has occurred that may lead to a future insurance claim. In some cases, policyholders elect to notify their insurance company when they become aware of such a situation or event, even if a formal claim has not yet been made. The purpose of this notice is to alert the insurance company early to a potential claim, and ensure that there is not an issue with late notice potentially hindering coverage for a related claim. A Notice of Circumstance does not constitute a formal claim against the policy, but it serves as a precautionary measure.