What is a notice of claim?

A notice of claim specifically refers to a communication made to an insurance company to report an incident that may lead to a claim. This process is essential for initiating the claims process, and it serves as the formal notification that the policyholder is seeking to make a claim based on a covered event. By submitting a notice of claim, the insured informs the insurer about the details of the incident, allowing the company to begin its investigation and assessment of the potential claim. This step is crucial for ensuring that the policyholder's rights to coverage are protected and that the claim is handled in accordance with the terms of the insurance policy.

The other options do not accurately represent the function of a notice of claim. Reporting potential changes in policy, notifying about premiums due, or requesting adjustments to coverage relate to different aspects of insurance management and do not address the specific need for reporting an incident that may warrant a claim.