A law firm may attempt to bind an insurer to a 3rd party contract. The insured law firm’s client contract with the law firm may require certain language in the insured law firm’s insurance policy that is not there. The insured firm hopes that the insurer will be bound to that contract. An insured cannot bind an insurer to the terms of a 3rd party contract through contractual liability.
Expect to find a contractual Liability exclusion in your attorney malpractice policy. While the exclusion wording may differ the exclusion intent is the same. The Everest Attorney Malpractice Insurance policy shows typical wording:
based upon, arising out of or attributable to any actual or alleged liability of the Insured pursuant to any
written or oral contract or agreement, including any indemnification agreement, warranty, guarantee or
promise, provided that this exclusion does not apply to the extent the Insured would have been liable in the absence of such contract or agreement.”
An insured cannot amend or make an insurer obligated to a 3rd party without the insurers written consent.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080