Notice of Circumstance

The purpose of a Notice of Circumstance is to provide the insurance company with an overview of the current situation and any facts that may be relevant to any future claim. This allows the insurance company to assess the risk of a claim being made against the policyholder and to take appropriate steps to protect their interests. A Notice of Circumstance may refer to a range of different incidents, from a potential criminal investigation to a potential financial irregularity.

The Notice of Circumstance should provide detailed information about the circumstances or situations that have been identified and should include relevant dates, times, and other associated information. It should also provide an explanation of how the situation could potentially give rise to a claim against the policyholder.

In summary, a Notice of Circumstance is a document used in the field of D&O insurance that provides details of potential factual circumstances or situations that may give rise to a claim in the future. It is typically issued by the policyholder, or their representative, and provides the insurance company with an overview of the current situation and any facts that may be relevant to any future claim.