For years some professionals go without worrying about malpractice insurance coverage and the protection that comes with having their past acts covered. But then there is a changing of the guard and the attorney or accountant calls because they need past acts protection. Sometimes this because they are becoming a Judge, Prosecutor, or Public Official, etc. and never had insurance, but are now required to have their past acts covered before assuming their new duties. Or they are trying to sell their practice and the buyer is requiring past acts coverage. Also, for some they had E&O coverage and did not purchase an Extended Reporting Period Endorsement (ERP or Tail) allowing it to lapse and lose prior acts.
Whatever the reason it is sometimes possible to obtain malpractice protection 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 lump sum payment and it is generally only purchased on an annual basis. Also getting this coverage is not guaranteed.
These policies are carefully underwritten and can be expensive, starting at around $5000 per year per professional 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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Contact Me Today
Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080 |