Knight Specialty Insurance 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 Knight Specialty Insurance malpractice coverage and disciplinary coverage are ‘Duty to Defend’, Policy wording for disciplinary coverage and reporting differs by carrier. The disciplinary reimbursement is not subject to the policy deductible.
I. INSURING AGREEMENT
C. Coverage extensions
- Disciplinary Proceedings
Subject to additional Limits of Liability of $50,000 per disciplinary proceeding and an aggregate of $100,000, we will provide for the defense costs incurred in a disciplinary proceeding first commenced against you during the policy period, or an extended reporting period if applicable, and reported to us in accordance with Section VI.C. Notice of Claim, as a result of a covered act committed by you on or after the retroactive date and before the end of the policy period. The additional Limits of Liability applicable to this coverage extension
I.C.1. is the maximum amount payable under this policy regardless of the number of disciplinary proceedings first commenced during the policy period, or the extended reporting period, if applicable, or the number of you subject to disciplinary proceedings and is in addition to the Aggregate Limit of Liability as set forth in Item 3.b. of the Declarations. No deductible shall apply to this coverage extension I.C.1.
IV. DEFINITIONS
C. Claim means:
- a written or verbal demand for money or services;
- a written or verbal demand to toll or waive a statute of limitations;
- a judicial civil proceeding;
- a disciplinary proceeding including but not limited to a demand, grievance, or allegation involving a covered act made against you to any professional association or society charged with the responsibility to oversee professional disciplinary matters, whether or not such demand, grievance, or allegation is initiated at or results in a formal civil proceeding in state or federal court but only to the extent of the coverage afforded by INSURING AGREEMENT I.C.1.; or,
- any other regulatory, administrative, or arbitrative proceeding.
I. Defense costs means:
- reasonable and necessary fees and costs incurred by us or incurred by you with our written consent (including premiums for any appeal bond, attachment bond, or similar bond but without any obligation to apply for or furnish any such bond) resulting from the investigation, adjustment, defense, or appeal of a claim against any of you; provided, however, that defense costs will not include compensation of any of you or our employees or officers; and
- all costs taxed against you in a claim defended by us and interest which accrues after the entry of a judgment and before we have tendered or deposited in court, or otherwise, such judgment amount covered by the terms of this policy and for which you are legally liable.
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
