Call Us 866.940.1101 ☰ ˟
866.940.1101
Logo
  • Home
  • About Us
    • About Us
    • Employee Directory
    • Partners Page
    • Event Calendar
    • Refer a Friend
  • Get A Quote
  • Products
    • Lawyers Malpractice Insurance
    • Professional Liability Coverage For Attorneys
    • Accountants Professional Liability
    • Dentist Malpractice Insurance
    • Business Owners Policy
    • Cyber Liability Insurance
    • Workers Compensation Insurance
    • Title Agents E&O Insurance
    • Paralegal Malpractice Insurance
  • Testimonials
  • Common Terms
    • Common Terms
    • Frequently Asked Questions
  • Blog
  • Contact
  • Areas We Serve
    • Grand Rapids, MI
    • Detroit, MI
    • Lansing, MI
    • Kalamazoo, MI
Home > Blog > Legal Malpractice Insurance Consequences of Hiring a Suspended Attorney
THURSDAY, AUGUST 25, 2022

Legal Malpractice Insurance Consequences of Hiring a Suspended Attorney

Rider Lying on Top of Horse

Hiring a suspended attorney impacts the firm’s attorney malpractice insurance. While it is the firm’s prerogative to hire who they want, it can cause a firm to lose coverage.

Some Examples:

1.       Law Firm hired an attorney that was currently suspended from the practice of law.  Firm did not know about the suspension.  Law Firm is slow to notify L Squared Insurance Agency about the hire and consequently the insurer is in the dark about the hire.  About 3 months after the firm hires the attorney, firm finds out that the attorney is suspended from practice when the new attorney supplement is completed. Insurer at this point threatens to cancel coverage midterm or not renew and/or at the same time rescinding any coverage for attorney that is currently not licensed to practice law. (Attorney malpractice insurance policies provide coverage for licensed attorneys.)  Firm was non-renewed and is now in surplus lines with less coverage and a higher premium.

2.       Firm hires an attorney that had a number of “private” admonishments for notarizing documents that were not witnessed personally.  Law Firm’s incumbent insurer does give renewal terms that are about 25% higher with a very high deductible.

3.       Firm knowing hired a suspended attorney as a paralegal.  All is well as most insurers do not ask questions about paralegals.  After a couple of years, attorney’s suspension ends. Attorney malpractice insurer is promptly notified of new attorney on firm’s roster.  Law Firm’s attorney malpractice insurer refuses to renew coverage or add attorney to policy.  Firm is now in surplus lines.

It is a malpractice underwriter’s prerogative to refuse to add an attorney on for coverage at a law firm.  This can put the firm in a precarious position. Finding new coverage midterm can be difficult and costly.  Not having an attorney covered by malpractice insurance could be even more expensive.

Lee

 
 
   Contact Me Today
   Lee Norcross, MBA, CPCU

    Managing Director, CEO
    Click here to contact Lee Norcross, MBA, CPCU, CPIA

     (616) 940-1101 Ext. 7080

 
Posted 5:37 PM

Tags: attorney malpractice insurance, hiring suspended attorney
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

  • lawyers professional liability insurance(429)
  • attorney malpractice insurance(399)
  • attorney malpractice(337)
  • legal malpractice(225)
  • legal liability(134)
  • cyber insurance(106)
  • data breach(92)
  • ethics(87)
  • erp(57)
  • malpractice insurance(55)
  • claims(39)
  • title agency e&o(36)
  • accountant e&o(34)
  • extended reporting period endorsement(30)
  • tail(29)
  • phishing(25)
  • legal malpractice insurance(23)
  • prior acts(22)
  • claims made coverage(21)
  • extended reporting period(21)
  • cyber security(20)
  • cyber liability(18)
  • accountant errors & omissions(18)
  • claims reporting(18)
  • crime insurance(16)
  • ransomware(16)
  • claim prevention(16)
  • attorney protective cle(14)
  • the hartford weekly newsletter(14)
  • attorney protective cle webinar(14)
  • 2022 mcgowan pro cpe webinar for accountants(13)
  • professional liability insurance(13)
  • mcgowan webinar series for cpas 2021(12)
  • retirement tail(12)
  • attpro tip of the month(12)
  • business owners insurance(11)
  • legal liability insurance(11)
  • fee suits(10)
  • full prior acts(10)
  • cyber crime(10)
  • accountant errors & omissions insurance(10)
  • prior acts date(9)
  • step rating(9)
  • non-practicing erp(9)
  • bop(9)
  • cyber liability insurance(9)
  • title agent errors & omissions(9)
  • claims made(9)
  • coverage(8)
  • webinar(8)

View Mobile Version
Logo
Quick Links
Home Our Products Customer Service Payment Options Common Terms
About Us Refer A Friend Our Carriers Blog Contact Us
Location
2430 Camelot Ct SE
Grand Rapids, MI 49546

Local: 616.940.1101
Toll Free: 866.940.1101
Email: info@L2ins.com
Facebook Twitter Social LinkedIn
© Copyright. All rights reserved.
Powered by Insurance Website Builder