Attorney Malpractice Policies that Reduce Your Deductible for a Mediated Settlement
Not everyone is a fan of a mediated settlement. Mediation settlements for attorney malpractice complaints/claims are one way for insurers and insureds to reduce claims and deductible costs. Certain law firms may consider this when deciding on the appropriate insurance policy to meet the firm’s needs.
Based on our research of 21 different lawyer’s professional liability policies the following lists policies with deductible mediation settlement clauses:
- Berkley LPL Policy (LPL 39450 10-14)
Section II.F – Risk Management Incentives – Mediation
“If mediation… takes place… and such claim is resolved… the Insured’s deductible… will be reduced by 50%. In no event shall the amount… exceed $10,000.”
- CNA Lawyers Professional Liability (G118011A 06-2015)
Section II.F.1 – Mediation
“If mediation… takes place… and such claim is resolved… the Insured’s deductible… will be reduced by 50%. In no event shall the amount… exceed $25,000.”
- Everest Elevation LPL Policy
Section V.E – Collaborative Defense
Deductible reduced by 50% if the claim is settled in mediation or within 365 days.
- Golden Bear LPL Policy
Section VI.A – Settlement of Claim
Deductible reduced by 50% (max $15,000) if settled in initial voluntary mediation or within 30 days after mediation.
- ISMIE Lawyers Professional Liability
Section III.E – Deductible Credit for Mediation
Deductible reduced by 50% or $25,000 (whichever is less) if resolved in mediation.
- KnightBrook / LAWGold
Section III – Claim Mitigation
Deductible waived if resolved through ADR; or reduced by 25–50% depending on timing and engagement letter.
- Medmarc-ALPS LawyerCare – LCP100 (02-26)
Section 5.5 – Mediation
“If any claim… is resolved through the use of formal mediation… the Deductible… will be reduced by fifty percent (50%), or by $20,000, whichever is less.”
- Old Republic / PMA (LPL 00 01 07 23)
Section III.K – Early Claim Resolution
Deductible reduced by 50% if settled within 364 days for an amount recommended by the insurer.
- Travelers Lawyers Professional Liability
Section VI.C – Deductible
Deductible reduced by 50% (max $25,000) if settled in initial voluntary mediation or within 30 days after mediation.
- Westfield Specialty
Relevant policy language (quoted):
“If the Insurer and the Named Insured agree to the final settlement of a Claim… during the initial voluntary mediation of that Claim, or within thirty (30) days after participation in such mediation, the Retention… will be reduced by fifty (50%) percent, subject to a maximum reduction of $25,000.”
This blog has excerpts from cited policies. Other terms and conditions apply. As each claim is unique the complete policy along with applicable endorsements plus the claim and settlement specifics could impact the information provided. The analysis was limited to the insurers that L Squared has access to the policies, endorsements & applications.
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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
Managing Director, CEO
Lee@L2Ins.com
616-726-7080
