A provision found in professional liability policy forms affording a reduced
deductible (or retention) if, prior to the time a claim is made, the insured
reports the "incident" giving rise to the claim to the insurer. The
purpose of the provision is to encourage insureds to make such reports, which
allow the insurer to provide advice, generally from an attorney selected by the
insurer, on how to handle the situation. For example, prior to terminating an
employee, if an insured contacts the insurer's employment counsel, the
insured will receive instructions on how to reduce the possibility of being
sued for wrongful termination (e.g., advice regarding how to conduct the exit
interview, how much severance to pay, what to say to the ex-employee regarding
the providing of references).