What is the first step in addressing a liability claim under a commercial general liability policy?

The first step in addressing a liability claim under a commercial general liability policy is to notify the insurer of the claim. This step is crucial because insurance policies typically include requirements for policyholders to promptly report any claims or incidents that may lead to a claim. By notifying the insurer, the policyholder ensures that the insurance company can initiate its procedures for investigating, evaluating, and defending the claim.

Timely notification allows the insurer to gather necessary information while the facts are still fresh, and it sets into motion the insurer's obligation to provide coverage as outlined in the policy. This process often leads to the insurer taking over the management of the claim, which includes appointing legal representation if necessary, as well as determining the validity of the claim against the insured party. Following this correct sequence is essential in maintaining the integrity of the coverage and ensuring that all parties involved manage the claim effectively and within the policy's guidelines.