Completing the Lawyers Professional Liability Application
While it is one of the more boring things to do, essential for risk management is properly completing the Lawyers Professional Liability Insurance (LPL) application. While this process takes away from billable hours, if done incorrectly it can lead to having claims denied, the law firm being non-renewed, or if the error is material enough coverage rescinded.
Minimum steps that when completing the application:
- Don’t wait till the last minute. Normally last minute insurance surprises are not good. Getting the application completed and submitted by at least 14 days prior to expiration is optimal. If there are claim or non-renewal issues the earlier the better.
- A staff member familiar with the firm’s controls, past claims history, coverages and terms should complete the application.
- Make sure the roster of attorneys is correct and complete. Applications may ask for all licensed attorneys with the firm. Regardless of the position or tasks performed, include all licensed attorneys on the attorney roster.
- For any questions about potential claims, disciplinary matters, outside interests such as a directorship or a geographic area for a client outside of the firm’s normal pattern of clients; the firm should poll the entire staff about these matters.
- With a multi-member firm, a second member of the firm should review the completed application once completed determining its accuracy.
The partner signing the application needs to thoroughly review the application for accuracy. A starting point to completing the application may involve using answers from the prior year’s application to complete the new application. Problems arise if the prior year’s application is incorrect. The error then propagates year after year on subsequent applications. Finding the error with a reported claim is often too late.
Inaccurate application information with material errors can lead to no claim coverage. An attorney blaming an assistant for the error does not usually sway the claims department. It is the attorney’s responsibility that signs the application to make sure that the application is accurate and reflects the operation of the law firm.
Applications above or below the signature line usually have a phrase like:
“I hereby acknowledge that the aforementioned statements and answers are correct and complete to the best of my knowledge and belief and that all information provided including this application, its supplements, attachments and answers to any questions asked by our underwriter will be relied upon by the Company in determining whether to insure and at what rate to insure.”
In certain circles the attorney executing the application has warranted its accuracy.
Get Lawyers Liability Insurance Malpractice Insurance Quote
Contact Me Today
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
