Florida Lawyers Mutual Attorney Malpractice Policy – Disciplinary Coverage
More than a few attorneys forget to take advantage of Disciplinary Coverage until it is too late. Attorney Malpractice Insurance policies that offer this coverage can be ‘Duty to Defend’ or ‘Reimbursement’. Even though the FLMA policy’s malpractice coverage is ‘Duty to Defend’, the disciplinary coverage is ‘Duty to Defend’. Insurer’s wording for disciplinary coverage and reporting differs by carrier. The disciplinary reimbursement is not subject to the policy deductible.
I. DEFINITIONS
- “Disciplinary Proceeding” means a complaint or inquiry to or by The Florida Bar, or a proceeding arising from or in response to a complaint or inquiry to or by The Florida Bar, or a disciplinary action, case or matter, under the Rules Regulating The Florida Bar, involving an allegation that an Insured has violated the Rules Regulating The Florida Bar.
II. INSURING AGREEMENT
E. DISCIPLINARY PROCEEDING COVERAGE
We shall pay up to $10,000 for reasonable fees and costs of legal services charged by a lawyer selected by the Company to defend an Insured as a result of a Disciplinary Proceeding based on allegations of violation of the Rules Regulating The Florida Bar in performing Professional Services on or after the Retroactive Date of the Insured. Such Disciplinary Proceeding must be first made against an Insured during the Policy Period and reported in writing to Us during the Policy Period.
This provision does not provide coverage to an Insured for payment of any costs taxed against an Insured or any restitution sums or other monetary awards of any other kind or description that result from the institution or disposition of a Disciplinary Proceeding.
The Policy deductible shall not apply to any payments under this provision. Any payments made under this provision will not reduce the Limit of Liability as provided by the Policy.
The maximum amount payable under the Policy for Disciplinary Proceedings shall not exceed $10,000 per Policy Period regardless of how many Disciplinary Proceedings occur and are reported to Us during the Policy Period.
Not taking advantage of this policy coverage does not make sense. Firms have a fear that reporting disciplinary complaints can impact their attorney malpractice insurance premiums. While too many disciplinary reported complaints that do not result in an issue can cause problems. Not reporting issues that may lead to a proceeding may impact your malpractice insurance should the same issue turn into a malpractice claim at a later date. The other issue is that once a year you may need to attest on the renewal application that there are no disciplinary issues.
Click the blog tag Disciplinary Coverage by Insurer to see coverage differences
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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
