Occasionally we have an attorney call because they are in need of past acts coverage for a variety of reasons. Sometimes they are about to become a Judge or Prosecutor etc. and never had insurance, but are now required to have past acts coverage before assuming their new duties. Another reason is that they worked for a large firm and have left and are now responsible to a very large deductible, i.e. over 100k if there is a claim made against them for while they worked for the firm. Or the attorney had coverage and for whatever reason did not purchase an Extended Reporting Period Endorsement (ERP or Tail) when coverage lapsed.
Whatever the reason it is possible to obtain coverage for those attorney malpractice exposures with a “Run Off” policy. This is a claims made policy that does not cover any current work being done but only past acts. Unlike an ERP there is no current policy that an endorsement can be attached to and it is generally only purchased on an annual basis. So there is no onetime fee and getting this coverage is not guaranteed.
These policies are carefully underwritten and can be fairly expensive, starting at around $5000 per year per attorney per $1 million of coverage. As these are normally offered by non-admitted surplus lines carriers, there will be additional taxes and fees added on.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080