Medmarc LawyerCare Now ALPS LawyerCare
It has been nearly one year since LawyerCare was acquired by ALPS Property & Casualty Insurance Company (ALPS). ALPS has worked directly with solo and small law firms since 1988. LawyerCare continues to serve this same segment, now operating completely separately as ALPS’ broker distribution channel.
The Transition
- LawyerCare Renewal Quotes: You will continue to receive a short, prefilled renewal application with your quote—just as you do today.
- Medmarc Notice: Separately from the renewal application and quote, you will receive Medmarc’s non-renewal notice by mail, as required by state law.
Policy Form
The new ALPS LawyerCare forms are consistent nationwide. While the ALPS policy (LCP 100) is similar to the Medmarc policy (LCP100) there are a few differences:
Strengthened Exclusions for Trust Account and Funds‑Handling Losses
The updated form expands the exclusion related to misappropriation or mishandling of funds. The prior form excluded conversion, commingling, theft, or misappropriation. The new form adds:
- Wrongful disbursement
- Negligent supervision
- Loss of funds
- Funds of any person held in any capacity
This reflects a broader industry trend: insurers are tightening language around trust account exposures and cyber‑adjacent losses.
Insured impact:
Coverage for losses involving trust accounts or client funds is now more limited. Firms should ensure internal controls and cyber protections are strong, as these losses are increasingly excluded from traditional malpractice policies.
Clarified Exclusion for Fraudulent Transfer Instructions
The 02‑26 form more explicitly states that while consequential damages may be covered, the actual amount of funds transferred due to fraudulent or unauthorized instructions is never covered.
Insured impact:
This reinforces that malpractice policies are not a substitute for cybercrime or social engineering coverage. Firms relying on wire transfers should maintain separate cyber coverage.
Enhanced Notice of Claim Requirements
The updated form adds a formal reporting section with dedicated contact information for claims reporting, including:
- Phone
- Mailing address
This is in addition to the existing requirement to provide details of the act, error, or omission.
Insured impact:
Reporting procedures are clearer and more prescriptive, reducing the risk of late‑notice issues. Firms should update internal procedures to reflect the new reporting channels.
Editorial and Structural Clarifications
The 02‑26 edition includes several non‑substantive improvements:
- More consistent terminology (“any Insured”)
- Reorganized paragraphs for readability
- Clearer cross‑references
- Updated formatting and footers
Insured impact:
These changes do not alter coverage but make the policy easier to navigate.
No Changes to Core Coverage
The following sections remain materially unchanged:
- Coverage grant
- Definitions
- Defense and settlement provisions
- Limits and deductibles
- Innocent insured protection
- Employment practices defense
- Subpoena assistance
- Extended reporting provisions
Insured impact:
The overall structure and intent of the policy remain stable. The updates primarily refine exclusions and clarify reporting obligations.
Bottom Line for Insureds
The LCP 100 (02‑26) form maintains the same core professional liability protections but introduces broader exclusions for fund‑handling exposures and clearer reporting requirements. Firms with significant trust account activity or wire‑transfer exposure should consider complementary cyber liability or crime coverage to address gaps created by the updated exclusions.
This blog is an excerpt from the policy. The complete policy along with applicable endorsements could impact the information provided above.
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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
