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 Disciplinary Coverage Duty to Defend vs Reimbursement
TUESDAY, JULY 14, 2020

Legal Malpractice Insurance Disciplinary Coverage Duty to Defend vs Reimbursement

Painted TurtleDisciplinary Coverage is an additional coverage found on most admitted and some non-admitted Legal Malpractice Insurance policies.  Some insurers that do not offer this coverage as part of their standard policy are willing to endorse it on if requested. 

With Legal Malpractice Insurance policies not being standard, this additional coverage has names like ‘Additional Coverages’, ‘Supplemental Payments’ , ‘Disciplinary Proceedings’, ‘Regulatory Inquiry Extension’  or related names either in the body of the policy or as an endorsement to the policy. 

Disciplinary Coverage is a defense only coverage; it will not indemnify for any fines or sanctions that are levied against the attorney or firm.  Disciplinary Coverage normally is not considered ‘damages’ which means it will not reduce your liability policy limits.  It is also not normally subject to the policy deductible.  Limits for this coverage usually range from $5000 to $100,000 and can be for each incident, for the policy period or some combination in between.

Most Legal Malpractice Insurance policies are ‘duty to defend’, but this does not always mean that the disciplinary coverage is ‘duty to defend’.  With ‘duty to defend’ disciplinary coverage once the matter is reported to the insurer, the insurer is responsible for providing counsel and pays defense costs up to the limits stated.  Generally the insurer in consultation with the attorney will appoint counsel to handle the defense.

Some Legal Malpractice Insurance policies offer ‘Reimbursement’ coverage for Disciplinary Matters.   In this case the attorney needs to find counsel to defend the matter and will be reimbursed for the cost of defense.  Further limiting the insurer’s liability, some ‘Reimbursement’ policies will only pay the defense costs if there is no finding against the attorney. 

With the average cost to defend a disciplinary matter approaching $20,000 this is essential coverage.  So even if your Legal Malpractice Insurance policy has ‘Disciplinary Coverage’, it is important for you to read and understand what your policy truly covers.  All Attorney Malpractice Insurance policies are not created equally.  ‘Reimbursement’ Disciplinary Coverage that only pays if the attorney is ‘innocent’ could lead to thousands of dollars of unreimbursed legal expenses.

 

 

Lee

 
 
   Contact Me Today
   Lee Norcross, MBA, CPCU

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

     (616) 940-1101 Ext. 7080

Posted 1:13 PM

Tags: reimbursement v duty to defend disciplinary coverage
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
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

  • lawyers professional liability insurance(429)
  • attorney malpractice insurance(348)
  • attorney malpractice(330)
  • legal malpractice(223)
  • legal liability(134)
  • cyber insurance(94)
  • data breach(92)
  • ethics(87)
  • erp(56)
  • malpractice insurance(49)
  • claims(39)
  • title agency e&o(36)
  • accountant e&o(34)
  • extended reporting period endorsement(30)
  • tail(29)
  • phishing(25)
  • claims made coverage(20)
  • extended reporting period(20)
  • prior acts(19)
  • legal malpractice insurance(18)
  • cyber liability(18)
  • cyber security(17)
  • accountant errors & omissions(17)
  • claims reporting(17)
  • ransomware(16)
  • claim prevention(16)
  • crime insurance(15)
  • attorney protective cle(14)
  • the hartford weekly newsletter(14)
  • mcgowan webinar series for cpas 2021(12)
  • professional liability insurance(12)
  • attorney protective cle webinar(12)
  • business owners insurance(11)
  • legal liability insurance(11)
  • fee suits(10)
  • retirement tail(10)
  • full prior acts(10)
  • bop(9)
  • title agent errors & omissions(9)
  • cyber crime(9)
  • accountant errors & omissions insurance(9)
  • prior acts date(8)
  • webinar(8)
  • non-practicing erp(8)
  • cyber liability insurance(8)
  • lawyers(8)
  • claims made(8)
  • employment practices liability(7)
  • attorney protective 2019 free cle webinar(7)
  • non-practicing extended reporting period endorsement(7)

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