Legal Definitions - immediate-notice clause

An immediate-notice clause is a provision found in many insurance policies that requires the insured to inform the insurer as soon as possible after a claim arises. This clause is also known as a prompt-notice clause.

When an insurance policy includes an immediate-notice clause, it means that the insured must notify the insurer within a reasonable time under the circumstances. The clause may use phrases such as "immediately," "at once," "forthwith," "as soon as practicable," or "as soon as possible."

For example, if a homeowner's property is damaged by a storm, the homeowner must notify their insurance company immediately. If the homeowner waits too long to report the damage, the insurer may deny the claim.

Similarly, if a driver is involved in a car accident, they must inform their auto insurance company as soon as possible. Failing to do so could result in the insurer denying coverage for the accident.

These examples illustrate how an immediate-notice clause works in practice. By requiring prompt notification of claims, insurers can investigate and process claims more efficiently, which benefits both the insurer and the insured.