Call Us 866.940.1101 ☰ ˟
866.940.1101
Logo
  • Home
  • About Us
    • About Us
    • Employee Directory
    • Partners Page
    • Event Calendar
    • Refer a Friend
  • Get A Quote
  • Products
    • Lawyers Malpractice Insurance
    • Accountants Professional Liability
    • Dentist Malpractice Insurance
    • Business Owners Policy
    • Cyber Liability Insurance
    • Workers Compensation Insurance
    • Title Agents E&O Insurance
  • Testimonials
  • Common Terms
    • Common Terms
    • Frequently Asked Questions
  • Blog
  • Contact
Home > Blog > Attorney Malpractice Coverage Ends when Attorney Leaves Firm
THURSDAY, APRIL 16, 2020

Attorney Malpractice Coverage Ends when Attorney Leaves Firm

King on HorseWith an uptick in turnover at law firms there is a common misconception that can cause uninsured malpractice claims. Many attorneys and firms wrongly believe that the Attorney Malpractice Insurance coverage for a departing attorney continues until the end of the policy term because it is ‘paid for’.  This is not the case, once an attorney leaves a law firm any work done for themselves or another firm is not covered.  The departing attorney needs to purchase a new policy or be added to their new firm’s Attorney Malpractice Insurance policy for coverage.  Attorney Malpractice is written for the law firm covering the work done on behalf of the law firm.

With this stated, for most Attorney Malpractice Insurance policies the old law firm continues to have past acts coverage for the departing attorney.  This is as long as the old law firm continues to maintain continuous clams-made Attorney Malpractice Insurance.  Most Attorney Malpractice insurance policies define as the “insured” past and present attorneys, employees & partners for work they have done on behalf of the named insured firm.  Given this definition, there is no need for the firm or the individual to purchase an individual extended reporting period endorsement (ERP or Tail) for that departing attorney.  In fact, many insurers do not permit the purchase of an individual attorney ERP.

The concern that the parting attorney may have is that if the firm they left breaks up later or fails to maintain their Lawyers Professional Liability policy do they have a ‘right’ or are they able purchase an ERP later.  Unfortunately, once an attorney leaves a firm their ‘right’ to purchase an ERP under the old firm’s policy ends.  There are alternatives, such as a ‘Run Off’ policy that can provide past acts individual coverage for that attorney, but they are generally expensive and sometime difficult to obtain.

 

Lee Norcross 
Contact Me Today
Lee Norcross, MBA, CPCU

Managing Director, CEO
Click here to contact Lee Norcross, MBA, CPCU

(616) 940-1101 Ext. 7080 
Posted 5:01 PM

Tags: policy written on behalf of the named insured firm
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

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
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

  • lawyers professional liability insurance(429)
  • attorney malpractice insurance(329)
  • attorney malpractice(319)
  • legal malpractice(223)
  • legal liability(134)
  • data breach(92)
  • cyber insurance(90)
  • ethics(87)
  • erp(53)
  • malpractice insurance(46)
  • claims(39)
  • title agency e&o(36)
  • accountant e&o(34)
  • extended reporting period endorsement(29)
  • tail(26)
  • phishing(25)
  • claims made coverage(19)
  • extended reporting period(18)
  • accountant errors & omissions(17)
  • claims reporting(17)
  • prior acts(17)
  • cyber security(16)
  • legal malpractice insurance(16)
  • cyber liability(16)
  • ransomware(16)
  • claim prevention(16)
  • crime insurance(15)
  • attorney protective cle(14)
  • the hartford weekly newsletter(14)
  • professional liability insurance(12)
  • business owners insurance(11)
  • legal liability insurance(11)
  • retirement tail(10)
  • full prior acts(10)
  • fee suits(9)
  • bop(9)
  • title agent errors & omissions(9)
  • cyber crime(9)
  • accountant errors & omissions insurance(9)
  • prior acts date(8)
  • webinar(8)
  • non-practicing erp(8)
  • cyber liability insurance(8)
  • lawyers(8)
  • claims made(8)
  • employment practices liability(7)
  • attorney protective 2019 free cle webinar(7)
  • non-practicing extended reporting period endorsement(7)
  • malpractice claims(7)
  • policy exclusions(7)

View Mobile Version
Logo
Quick Links
Home Our Products Customer Service Payment Options Common Terms
About Us Refer A Friend Our Carriers Blog Contact Us
Location
2430 Camelot Ct SE
Grand Rapids, MI 49546

Local: 616.940.1101
Toll Free: 866.940.1101
Email: info@L2ins.com
Facebook Twitter Social LinkedIn
© Copyright. All rights reserved.
Powered by Insurance Website Builder