Notice of Occurrence

What You Need to Know

The notice should include the date, time, and location of the occurrence, the parties involved, a description of what happened, any injuries or damages, and any relevant supporting information like photos, witness statements, or incident reports. Most policies require notice "as soon as practicable" or "as soon as possible" after an occurrence, and failure to provide timely notice can result in your claim being denied.

Insurance companies include notice requirements because prompt reporting lets them investigate while evidence is fresh, interview witnesses while memories are clear, document the scene before conditions change, and potentially settle claims early before they become expensive lawsuits. If you wait months to report a slip-and-fall, and by the time they investigate the scene has been altered and video footage deleted, they may deny your claim for failure to provide timely notice – even though you have coverage for the underlying incident.

Why It Matters for Restaurant Owners

Understanding your obligation to provide prompt notice of occurrence is critical because failure to notify your insurer in a timely manner can void your coverage for that incident, leaving you personally responsible for all damages.

Many restaurant owners make the mistake of thinking "I'll wait and see if they actually sue before I report it" or "I don't want to report this because it might increase my premiums." These approaches can result in denied claims that cost you hundreds of thousands in out-of-pocket legal fees and settlements.

The correct approach is to report any incident that could potentially result in a claim – customer injuries, employee injuries, property damage, foodborne illness complaints, discrimination allegations, and any other unusual incidents – immediately to your insurer, even if you think it's minor and won't result in a claim. Your insurer would rather investigate 100 incidents that don't become claims than have you fail to report the one that does.