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 Insurer Declines Coverage for Law Firm with Out of State Clients
WEDNESDAY, JULY 11, 2018

Legal Malpractice Insurer Declines Coverage for Law Firm with Out of State Clients

Out of StateWe have actually helped law firms that were carrying 2 or 3 legal malpractice insurance policies because the malpractice insurers they had written with were only licensed in one state.  In many cases the premiums were cut in half once the firm was written on one policy.   Attorney malpractice insurance insurers that are not licensed to write in all states where the law firm has clients will many times decline to write coverage or limit coverage to just one state.

Many mutual insurers have this issue.  But there are times that an insurer may be licensed, but still refuse to write in a particular state.  For some insurers even one client in the wrong state cause a declination. 

The reasons for this are:

1.       Attorney malpractice insurers generally do not have panel counsel in states not licensed in.

2.       A lawyers professional liability insurer may have written business in that state but has since withdrawn, because of poor results.  This can be due to the legal climate in that state and/or poor underwriting results.  Either way insurer wants nothing to do with handling claims in a particular state.

3.       A malpractice insurer is concerned that the law firm may not understand the law in another state which could result in additional attorney malpractice exposures.

4.       A malpractice insurer is comfortable with very small percentage of a law firm’s work coming from another state, but may ask additional questions as to the type of work performed and percentage of this work in another state.

For certain law firms that run into this problem, best solution is to align with a malpractice insurance insurer that is licensed in all states that the law firm does business in.   This may or may not be the least expensive policy premium option, but likely is the best insurance coverage solution.  Fortunately, L Squared Insurance Agency being a national agency represents many competitively priced insurers that write nationwide.

Posted 4:31 PM

Tags: legal liability, attorney malpractice insurance, lawyers professional liability insurance, attorney malpractice, declines for out of state clients
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(404)
  • attorney malpractice(337)
  • legal malpractice(225)
  • legal liability(134)
  • cyber insurance(107)
  • data breach(93)
  • ethics(87)
  • erp(58)
  • malpractice insurance(56)
  • claims(39)
  • title agency e&o(36)
  • accountant e&o(34)
  • retirement tail(34)
  • extended reporting period endorsement(30)
  • tail(29)
  • ownership-director-officer exclusions(28)
  • attorney fees punitive damages(28)
  • disciplinary coverage(28)
  • phishing(25)
  • legal malpractice insurance(23)
  • prior acts(22)
  • claims made coverage(21)
  • extended reporting period(21)
  • cyber security(20)
  • nonpracticing extended reporting period(19)
  • cyber liability(18)
  • accountant errors & omissions(18)
  • claims reporting(18)
  • professional services defined(17)
  • crime insurance(16)
  • ransomware(16)
  • claim prevention(16)
  • attpro tip of the month(15)
  • attorney protective cle(14)
  • the hartford weekly newsletter(14)
  • attorney protective cle webinar(14)
  • insurance(13)
  • 2022 mcgowan pro cpe webinar for accountants(13)
  • coverage(13)
  • professional liability insurance(13)
  • business owners insurance(12)
  • mcgowan webinar series for cpas 2021(12)
  • crisis event coverage(12)
  • legal liability insurance(11)
  • bop(11)
  • fee suits(10)
  • full prior acts(10)
  • cyber crime(10)
  • accountant errors & omissions insurance(10)

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