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All Lawyers Professional Liability Insurance policies sold in the USA are claims made policies.  This continues to be an issue that comes up time and again with attorneys that falsely believe if they let their coverage lapse that past acts will be covered by the lapsed Attorney Malpractice Insurance Policy.  Nothing can be further from the truth.  Once claims made coverage lapses, if there is not an extended reporting period endorsement, there will be no carrier to report a claim to.  Hence past acts coverage is gone.

The following is an actual exchange between the L Squared Agency and a past insured who has let their Attorney Malpractice coverage lapse.

From Attorney

I apologize for the delay. I have been informed that I must replace my entire computer system. The cost of repair is excessive. I will have a quote tomorrow. Is there any way to delay the renewal or to re-apply in 30 days?

Response to Attorney

Sorry to hear about your computer.  If you wish to maintain your prior acts, you must have continuous coverage and you would need to renew now.  If that is not a concern than you can reapply at any time.

 

From Attorney

I do not understand. I was covered for the year of 2015. So, if I cannot renew immediately, anything which happened in 2015 is no longer the responsibility of the insurer? Note, I have not had any complaints in 23 years of practice.

Response to Attorney

All Lawyers Policies sold in the US are Claims made policies.  Meaning that if a claim arises it can only be reported to the current carrier if continuous claims made coverage is in force.  If coverage lapses there is no current carrier to report to.

 

For more straight talk about coverage contact L Squared Insurance Agency LLC which specializes in claims made insurance for professionals.

Note:  The above is general information about a Claims Made Insurance policy concept.  Different insurance policies and different situations may or may not treat these concepts in a similar manner.

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