When should the Association disclose potential litigation to the members?

Hi all - last winter, a tenant who rents a unit at our property slipped and fell on the ice. A few months ago, they hired a lawyer who sent a threatening letter, which we forwarded to our insurer. Our insurer is now in discussions to settle. No lawsuit has yet been filed. We have just received insurance renewal quotes, and our insurer is quoting a ~20% increase in rates (despite there not being any loss actually incurred yet!).

When would you notify unit owners of this situation?

- Back when the demand letter was first received? (we didn't notify at that time - our reasoning was that there was no lawsuit, and, no tangible financial impact yet).
- Now (upon receipt of large insurance increase) - on the reasoning that it is the first tangible financial impact?
- Wait to notify if/when a lawsuit is actually filed?