Golden Bear Attorney Malpractice Insurance 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 Golden Bear’s Insurance policy malpractice coverage is ‘Duty to Defend’, the disciplinary coverage is ‘Reimbursement’. Policy wording for disciplinary coverage and reporting differs by carrier. The disciplinary reimbursement is not subject to the policy deductible.
Policy Coverage:
II. COVERAGE ENRICHMENTS
C. Disciplinary Proceeding Expenses
The Company will reimburse the Insured for Disciplinary Proceeding Expenses the Insured incurs in responding to a Disciplinary Proceeding commenced during the Policy Period, provided that:
1. the Disciplinary Proceeding arises out of Wrongful Acts committed by an Insured;
2. the entirety of the Wrongful Act happens on or after the Retroactive Date and before expiration of the Policy Period stated in the Declarations;
3. written notice of the Disciplinary Proceeding is received by the Company during the Policy Period or any applicable Extended Reporting Period, and
4. prior to the effective date of this Policy Period, or in the event of sequential Policy Periods, the first Golden Bear Insurance Company policy, no Insured had any knowledge of such Wrongful Act or any fact, circumstance, situation, or incident which would lead a reasonable person in that Insured’s position to conclude that a Claim was likely.
The maximum reimbursement amount available for Disciplinary Proceeding Expenses will be $25,000, in the Aggregate, regardless of the number of Insureds against whom Disciplinary Proceedings are instituted or the number of Disciplinary Proceedings commenced against Insureds during the Policy Period.
Policy Definition:
I. Disciplinary Proceeding means any proceeding by a regulatory or disciplinary official, governing boards, or agency to investigate the charge of professional misconduct by an Insured in the performance of Legal Services.
J. Disciplinary Proceeding Expenses means reasonable and necessary defense attorney fees, costs, or expenses, including, but not limited to, expert fees actually paid by the Insured to defend an Insured in any Disciplinary Proceeding. Disciplinary Proceeding Expenses do not include:
1. criminal or civil fines, penalties, or sanctions assessed against any Insured;
2. taxes, registration, or licensing fees;
3. any monetary judgement, award, or settlement of any kind; or
4. salaries, wages, employment benefits, or overhead paid by any Insured.
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 about 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
