Attorney Malpractice Insurance Covered Professional Services
When it comes to attorney malpractice insurance (also called lawyers professional liability insurance (LPL)), the definition of “professional services” is one of the most important policy parts. This definition determines what types of work are covered and just as importantly, what isn’t. With no standard policy language each insurer may have a slightly different definition of covered professional services. Understanding this definition helps lawyers, law firms, and risk managers know where their protection begins and ends.
What Are Professional Services?
Each insurer defines professional services slightly differently, but policies typically cover activities that lawyers traditionally perform in the practice of law. Common inclusions are:
- Legal services provided as a lawyer, mediator, arbitrator, or notary public.
- Fiduciary roles such as serving as a trustee, guardian, conservator, or executor.
- Title insurance agent services when connected to legal work.
- Pro bono or unpaid legal work.
- Work performed by paralegals, clerks, or staff under an attorney’s supervision.
What Is Not Covered?
While the scope of coverage is broad, professional services do not include everything a lawyer might do. No LPL policy is “All Risk”, typical exclusions include:
- Business roles such as serving as an officer, director, or a closely held company (business owner).
- Certain practice areas may be excluded by endorsement or policy language. Securities work is a frequent exclusion.
- Non-legal professions such as accounting, real estate, or financial advising (unless specifically endorsed).
- Criminal, fraudulent, or intentionally wrongful acts.
Why the Definition Matters
The way professional services are defined impacts coverage in three major ways:
- Scope of Coverage – If an attorney’s act falls outside the definition, the malpractice policy may not apply. A good rule of thumb is if an additional license is required, then likely another type of coverage is required.
- Risk Management – Law firms should ensure engagement letters and ancillary services match the policy’s scope.
- Claims Handling – Insurers review whether the alleged error arose from covered services before defending a claim.
An insurance policy is a detailed written contract. Coverage generalizations lead to coverage gaps. Because the definition of professional services sets the boundaries of coverage, it’s important for attorneys to understand how their specific insurer’s policy and endorsements defines the term. Reviewing these details with a knowledgeable insurance advisor ensures that your law practice has the right protection in place.
Click Here For an Lawyer Malpractice Insurance Quote
Contact Me Today
Lee Norcross, MBA, CPCU
California License # 0D87292
L Squared Insurance Agency, LLC ® DBA in California as L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
Lee@L2Ins.com
616-726-7080
