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Background:

This firm had 6 attorneys at the beginning of the policy year and is going to dissolve on December 31, 2017.  The firm is planning on purchasing a 1 year Extended Reporting Period Endorsement (ERP) for the firm.  Their current carrier Medmarc Casualty’s policy allows the purchase of individual attorney and firm ERP’s.  Medmarc allows 60 days from the date of coverage termination to purchase an ERP. (Note all malpractice insurance carriers are different on this and it is important to check your malpractice insurance carriers policy for number of days allowed.)

An ERP is an endorsement that is attached to the last inforce policy and extends the reporting period beyond the termination date of claims made coverage.  It does not change any other terms or conditions of coverage.

One of the concepts that many attorneys miss is that most Lawyers Processional Liability Insurance Policies are written on behalf of the firm and cover the attorneys for the firm (both past and present) while coverage is in force for covered past acts. 

Question from firm:

“One of the attorneys left in August.  If the firm purchases a 1 year ERP, will the attorney’s ability for reporting a claim end in August of the next year?  If this attorney so chooses can this attorney now purchase an individual ERP to extend coverage beyond the 1 year?”

Response to firm:

The attorney continues to have coverage under the firm’s policy as a past employee of the firm.  But the attorney’s ability to purchase a separate “Individual ERP” has passed as that right needed to be exercised within 60 days of the attorney leaving the firm.  Assuming the firm purchases a 1 year firm ERP, the attorney would continue to have coverage for the one year of the ERP as a past employee of the firm.  It is not a different date than the other attorneys that are still with the firm at the time the firm ERP is purchased.

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