Why you do not need both.
1st dollar defense (FDD) is also called a loss only deducible. Whichever name is used they mean the same thing. With FDD the insured is only responsible for the deductible if there is an indemnity payment required on the claim. Without FDD the deductible is due as claims expenses and/or indemnity payments are incurred. If the claim made results in no indemnity payment, then there will not be a deductible owed for that claim.
Some malpractice Insurers offer a zero dollar deductible option on their attorney malpractice insurance policies. With a zero dollar deductible there is no deductible payment even if there is an indemnity payment. An FDD endorsement services no purpose as an FDD endorsement also eliminates the deductible payment until there is an indemnity payment. But with a zero dollar deductible there is no deductible to pay.
A zero dollar deductible is the ultimate 1st dollar defense option to wipe out the deductible obligation.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080