A method for verifying that a kick or loss detected by surface monitoring equipment has occurred includes: receiving an input signal having notification that a kick or a loss has been detected in an earthen borehole during a time interval when drilling fluid is not being pumped into a drill string disposed in the borehole; sensing a pressure in the borehole to provide sensed pressure readings; comparing the sensed pressure readings to an upper threshold and a lower threshold; verifying that a kick has occurred if the notification comprises a kick detection and the sensed pressure reading are above the upper threshold; verifying that a loss has occurred if the notification comprises a loss detection and the sensed pressure readings are below the lower threshold; and transmitting a kick or loss verification signal to a signal receiving device upon verification that the kick or loss has occurred.