Call Us Today For A Free Quote | 866.940.1101
Professionals Insuring Professionals
 

Lawyers Professional Liability policy have no standard form for that is used.  Even though most policies are worded different, they generally cover the same risks and exposures.  As the saying goes the devil is in the details.  Case in point is the definition of “an insured”.   Most polices cover current attorneys, employees and partners along with past attorneys employees and partners under the firm’s policy.  There are normally reporting requirements spelled out by each carrier to inform the carrier of the comings and goings of attorneys.  But from a coverage standpoint, even after an attorney leaves the past attorneys, employees or partner leave that firm, that firm still has coverage in this situation for past acts of departed employees.  There is no real need under most circumstances to purchase and individual Extended Reporting Period Endorsement (ERP).  This is a typical definition of an “Insured” that protects past attorneys acts, from the Professional Solutions policy:

“9.   Insured means:

a The entity or person listed on the Declarations as the Named Insured and any

Predecessor Firm thereof, but only in rendering or failing to render Professional Legal Services on behalf of the Named Insured or Predecessor Firm;

b.   Any current partner, director, stockholder, shareholder, or employed lawyer of

any person or entity specified in item a. above; but only in rendering or failing to render Professional Legal Services on behalf of the Named Insured or Predecessor Firm;

c Any non-lawyer who is a past or present employee of the Named Insured or

Predecessor Firm for acts or omissions within the scope of such person’s

employment for the Named Insured or Predecessor Firm;

d.   Any lawyer who is a past partner, officer, director, stockholder, shareholder, employee of the Named Insured or Predecessor Firm, but only in relation to Professional Legal Services rendered on behalf of the Named Insured;

e Any former employee, former or current of counsel or independent contractor of the Named Insured or Predecessor firm, but only while acting within the scope of their employment for, and on behalf of, the Named Insured;

f Any lawyer who has retired from the Named Insured, but only arising from Professional Legal Services rendered on behalf of the Named Insured or Predecessor Firm before retirement, which are otherwise covered by this Policy; and

g The heirs, executors, administrators, assigns and legal representatives of any Insured, but only in their capacity as such in the event of any Insured’s death, incapacity or bankruptcy, and only for claims based on Professional Legal Services rendered prior to such Insured’s death, incapacity or bankruptcy, and only to the extent that such Insured would otherwise be covered by this Policy.”

 

 

There are a few Lawyers Professional Liability policies written that define an “insured” differently.  Those policies only provide coverage for the attorneys that are with the firm during the policy period.  Given this scenario, any time an attorney or partner leaves the firm it is important for the firm’s past acts protection to have an individual Extended Reporting Period endorsement (ERP or Tail) purchased.  If this is not done, firm could have an uninsured exposure for departed attorneys past acts.  This is a sample of the wording that only insures the attorneys and partners that are currently at the firm:

 

“Insured Means:

 

Any lawyer who is a regular employee of the Named red and who is named in the Application”

 

 

Under this “Insured” definition, the true cost of the policies for a firm that has attorneys that come in go could be higher than the premium might indicate, if the firm needs to purchase an ERP for an attorney that leaves the firm.  It is also important for a firm to understand which type of definition of “insured” is contained in the policy.

Lawyers Professional Liability Insurance policies are contracts.  This is an important contract for the firm to have read and understand as the definition of an insured is not created equally.

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Quick Contact
Referrals
We love referrals! And thank you even more for your continued business.
Customer Service
Self policy service any time of the day, directly from our website.
Join Our Newsletter
Stay in touch with the latest events, news and offers we have.
From Our Blog From Our Customers
Read More Read More
Stay In Touch With Us Helpful Site Links Read the News
Sign up now to receive new and updates Stay up-to-date with the latest industry, community and agency news through our newscenter. We also provide handy hints on how to save on your insurance.

Read More
We have the expertise to find you the right coverage at the right price 
Powered by Insurance Website Builder