Bad things can happen to a law firm that are not malpractice. If not addressed promptly could possibly end or damage the reputation of a firm or one of its attorneys. American Alternative Crisis Event Coverage may help to address these issues. Even though the American Alternative malpractice coverage is duty to defend, the Crisis Event coverage is reimbursement. The actual coverage provided is in Supplementary Payments policy section. Notice of a Crisis Event claims notification is also a Notice of Potential Malpractice Claim. Not all insurers provide a similar coverage.
From the declarations Page
Item 6 Supplementary Payments:
3. Crisis Event Expense Reimbursement:
a. Limit Per Crisis Event: $25,000
b. Aggregate Limit Per Policy: $50,000
From the Policy
Crisis Event Coverage
E. SUPPLEMENTARY PAYMENTS
4. Crisis Event Expense Reimbursement: The Company will reimburse the Named Insured up to the amount shown in the Declarations as the Per Claim Limit for Crisis Event Expenses arising from a Crisis Event, provided that such Crisis Event both first occurs, and is reported by the Insured to the Company, during the Policy Period. The maximum amount the Company will reimburse under this provision for all Crisis Event Expenses, regardless of the number of Crisis Events reported, is the amount shown in the Declarations as the Crisis Event Expense Reimbursement Aggregate Limit per Policy. The Crisis Event Expenses supplementary payment does not apply to any Crisis Event reported during an Extended Reporting Period, if purchased.
Claim Expenses and Damages arising from a Wrongful Act underlying a Crisis Event are not reimbursable under this Crisis Event Expense Reimbursement Supplementary Payment and are subject to the Per Claim Limit, Deductible and Aggregate Limit of Liability applicable to that Claim.
Crisis Event Definitions:
G. CRISIS EVENT means any:
1. Wrongful Act;
2. Death, departure, debilitating illness of any Insured;
3. Dissolution or potential dissolution of the Named Insured; or
4. Incident of workplace violence;
that the Named Insured reasonably believes will have a materially adverse impact on the Named Insured’s reputation.
H. CRISIS EVENT EXPENSES means reasonable fees, costs and expenses, incurred by the Named Insured for consulting services provided by a public relationship firm to the Named Insured in response to a Crisis Event.
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Lee Norcross, MBA, CPCU
California License # 0D87292
L Squared Insurance Agency, LLC ® DBA in California as
L2 L Squared Insurance Agency, License # 0L93416
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(616) 940-1101 Ext. 7080