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
    • Professional Liability Coverage For Attorneys
    • Accountants Professional Liability
    • Dentist Malpractice Insurance
    • Business Owners Policy
    • Cyber Liability Insurance
    • Workers Compensation Insurance
    • Title Agents E&O Insurance
    • Paralegal Malpractice Insurance
  • Testimonials
  • Common Terms
    • Common Terms
    • Frequently Asked Questions
  • Blog
  • Contact
  • Areas We Serve
    • Grand Rapids, MI
    • Detroit, MI
    • Lansing, MI
    • Kalamazoo, MI
Home > Blog > Attorney Malpractice renewal applications and Claims Reporting
WEDNESDAY, MAY 18, 2016

Attorney Malpractice renewal applications and Claims Reporting

Lee NorcrossOne area that law firms get caught on is completing the claims section of either the incumbent malpractice insurance carrier’s renewal application or a new business application with a different carrier at renewal.  “Prior Knowledge” of a claim is one of the leading causes for denial of Lawyers Professional Liability Insurance Claims.

Failing to report potential claims can cost the firm:

1.       Failure disclosing a potential claim on the application or renewal application gives a malpractice carrier the right to rescind the policy if the misrepresentation is material.  This will mean that coverage never existed.

2.       Most "claims made" policies do not cover any act, error or omission you could have reasonably foreseen when completing the application.  Even when Law Firms continue to renew with the same carrier for many years, a failure to report a claim or potential claim can mean that the firm has breached its duty  and can be a basis for the claim to be denied.

It is important to remember that just because you have disclosed a potential claim or actual claim on the application; it may not meet the requirements of the insurance carrier for reporting.  The firm needs to understand the claim reporting requirements. 

There are a few  traps that firms fall into when completing applications that can be avoided:

1.       Make sure that the person that is completing the application polls the entire staff as to any potential or actual claims or incidents.  The person completing the application should also have knowledge of any ongoing claims against the firm so that they can be properly disclosed.  We have had firms that assign the newest associate in the firm to complete the application.  That associate has no knowledge of existing claims against the firm even there is ongoing litigation.  The new business Lawyers Professional Liability Insurance application was completed by the new associate without disclosing the claim.  After the claim came to light at a later date, coverage was rescinded. 

2.       Even if you do not believe that a disciplinary matter or inquiry might result in a claim, it is important to disclose on the application.  If the matter turns into an attorney malpractice claim at a later date, the original notice of the inquiry could likely constitute “prior knowledge.”

3.        If the firm is switching carriers, make sure that any potential claims are reported to the incumbent insurance carrier prior to the expiration date of coverage.  Also make sure that the matter is fully disclosed on the new business application of the new carrier.  Once disclosed to the incumbent carrier, coverage for this issue will continue with the incumbent carrier even past the expiration date.  Your new malpractice carrier’s “claims made” policy language will exclude coverage for this matter.

4.       If even after coverage is bound with the new carrier, if it is prior to the expiration date and the firm gets notice of a malpractice claim, make sure it is reported to both insurance carriers.

Following the above tips will help the firm avoid attorney malpractice claims issues because of prior knowledge.

Posted 4:07 PM

Tags: legal malpractice insurance, attorney malpractice, malpractice insurance, lawyers professional liability insurance, claims reporting, malpractice application, prior knowledge
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
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

  • lawyers professional liability insurance(429)
  • attorney malpractice insurance(400)
  • attorney malpractice(337)
  • legal malpractice(225)
  • legal liability(134)
  • cyber insurance(106)
  • data breach(92)
  • ethics(87)
  • erp(57)
  • malpractice insurance(56)
  • claims(39)
  • title agency e&o(36)
  • accountant e&o(34)
  • extended reporting period endorsement(30)
  • tail(29)
  • phishing(25)
  • legal malpractice insurance(23)
  • prior acts(22)
  • claims made coverage(21)
  • extended reporting period(21)
  • cyber security(20)
  • cyber liability(18)
  • accountant errors & omissions(18)
  • claims reporting(18)
  • crime insurance(16)
  • ransomware(16)
  • claim prevention(16)
  • attorney protective cle(14)
  • the hartford weekly newsletter(14)
  • attorney protective cle webinar(14)
  • 2022 mcgowan pro cpe webinar for accountants(13)
  • professional liability insurance(13)
  • business owners insurance(12)
  • mcgowan webinar series for cpas 2021(12)
  • retirement tail(12)
  • attpro tip of the month(12)
  • legal liability insurance(11)
  • fee suits(10)
  • bop(10)
  • full prior acts(10)
  • cyber crime(10)
  • accountant errors & omissions insurance(10)
  • prior acts date(9)
  • step rating(9)
  • non-practicing erp(9)
  • cyber liability insurance(9)
  • title agent errors & omissions(9)
  • claims made(9)
  • coverage(8)
  • webinar(8)

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