Lawyers Mutual Insurance Company (LMIC) Attorney Malpractice Insurance Retirement Tail
Attorney Malpractice Insurance Policies are claims-made and reported policies. When the coverage ends the ability to report claims for past acts ends at policy termination. Attorneys leaving private practice via retirement, becoming a judge or working in the private or public sector need to protect their past acts. Insurers will not renew attorney malpractice policies for attorneys that are no longer in private practice. Given this it is important for attorneys to protect their past acts once coverage ends. LMIC offers an Extended Reporting Period endorsement (ERP) but does not offer a no cost non-practicing Extended Reporting Period Endorsement
The LMIC Insurance policy provides an ERP based on the following policy language:
ARTICLE 1.
The Definitions
1.13 “Extended Reporting Period” means:
the period provided for in an Extended Reporting Period Endorsement issued pursuant to Section 2.6 of this Policy.
1.14 “Extended Reporting Period Endorsement” means:
an endorsement issued pursuant to Section 2.6 of this Policy.
ARTICLE 2.
The Coverage
2.6 Extended Reporting Option.
Upon Termination, the Named Insured shall have the right, within 30 days of the Expiration Date and upon payment of an additional premium, to have issued an Extended Reporting Period Endorsement covering Claims first reported during the Extended Reporting Period arising from acts, errors, or omissions or Personal Injuries occurring prior to the Expiration Date and on or subsequent to the effective date of the first policy issued to the Named Insured or any Predecessor Firm by the Company and continuously renewed and maintained in effect to the Effective Date of this policy (or such earlier date as provided in an endorsement to this policy). The Extended Reporting Period Endorsement premium will be a percentage of the premium paid for this policy, subject to rerating the Named Insured as of the Termination date, as follows:
| Extended Reporting Period | Percentage |
| 1 Year | 100% |
| 3 Years | 180% |
| 5 Years | 220% |
| Lifetime | 285% |
Issuance of such Extended Reporting Period Endorsement shall not increase the Limit of Liability – Each Claim or the Limit of Liability – Policy Aggregate.
If, on the date of Termination, the Named Insured has failed to pay a premium due or has failed, after demand, to reimburse the Company such amounts as the Company has paid as Damages or for Claim Expenses in excess of the applicable Limits of Liability, or within the amount of the applicable Deductible, or has otherwise failed to pay other amounts due the Company, the Named Insured shall
not have the right to have such Extended Reporting Period Endorsement issued.
ARTICLE 6.
Other Conditions
6.10 Death, Incompetency or Bankruptcy of Insured.
If an Insured dies or is adjudged incompetent or bankrupt, this policy shall inure to the benefit of the legal representative of such Insured. Death, bankruptcy or insolvency of the Insured or the Insured’s estate shall not relieve the Company of any of its obligations hereunder, except the Company then may settle a Claim without the consent of the Insured or its Executor/Administrator, Bankruptcy Trustee, Conservator or other legal representative.
Planning retirement or a transition out of private practice should be discussed with your malpractice insurance agent prior to ending private practice when possible.
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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
