Notice · Insurance Law
Notification of facts that might give rise to a claim under a claims-made liability policy (section 40(3))
A written notice from an insured to its liability insurer of facts that might give rise to a claim, given before the policy period ends so that a later claim is covered under s 40(3) of the Insurance Contracts Act 1984 (Cth).
- Kind
- Notice. A formal notice to serve or publish.
- Where it applies
- Australia
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 18 October 2026
- Status
- Maintained. Checked on 18 October 2026 against the 3 authorities it cites, for Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Use when an insured under a claims-made or claims-made-and-notified policy (professional indemnity, D&O, management liability, cyber liability) becomes aware of an incident, complaint or error that could lead to a claim, and especially before renewal or expiry.
How AI may be used
AI may draft the notice and the chronology of facts from the client's file and the policy schedule; the lawyer checks the facts, the policy's notification clause and the timing before it is sent.
AI may
- Extract the policy number, period, insured entities and notification address from the schedule
- Draft a dated chronology of the facts from emails, complaints and file notes for the lawyer to verify
- List every possible claimant and the potential heads of loss mentioned in the documents
AI must not
- Must not make admissions of liability or characterise the insured's conduct as negligent or a breach
- Must not omit facts that might later be said to have been known, to make the notice look narrower
- Must not decide that a matter does not need to be notified
The lawyer checks
- The notice is given in writing, to the address the policy requires, before the period of cover expires, and as soon as reasonably practicable after the insured became aware of the facts
- The facts are described with enough detail to identify the potential claim and claimants, without admissions
- The policy's own notification and "circumstances" clause is satisfied, and any other potentially responding policy has also been notified
- The insured has been told not to admit liability, settle or incur defence costs without the insurer's consent
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
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- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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All precedents for Insurance Law · Tasks and AI use in this area