National Casualty Company (Nationwide) Choosing the Right Attorney Malpractice Insurance Deductible for You
Selecting the right deductible option is a strategic decision that balances risk and financial planning. It’s not just about current needs but also about anticipating future scenarios. The deductible amount sometimes called a retention amount makes up part of the exposure for the firm. National Casualty Company (NCC) program is specific to attorneys with a part-time practice.
Factors to Consider When Choosing a Deductible Option:
- Financial Stability: Assess your firm’s ability to handle out-of-pocket expenses associated with higher deductibles.
- Claims History: A firm with few or no past claims might opt for higher deductibles to reduce premiums.
- Risk Tolerance: Consider how much financial risk you’re willing to assume versus paying higher premiums.
- Practice Area: Certain legal specializations carry higher risk, influencing deductible choices.
- Firm Size: Larger firms may face more claims, making aggregate deductibles more appealing.
NCC offers the Following Deductible options:
- Per Claim Deductible—the firm is responsible for the deductible on each LPL claim. The policy premium is usually less than any other option. Certain practice areas or firm practices may tend to develop multiple claims in a policy year. A per claim deductible can increase the financial risk to the firm.
Attorney Malpractice Deductible Options by Insurer
The Lawyer Professional Liability (LPL) different deductible options may be part of the policy or provided as an additional charge. The deductible options can be in the declarations page or via policy endorsement. NCC’s policy language that deals with deductibles is as follows:
SUPPLEMENTAL PAYMENTS
The deductible will not apply to:
- Disciplinary Proceedings
- Attendance at Trial reimbursements
DEFINITIONS
- DEDUCTIBLE—means the amount YOU must pay for DAMAGES and CLAIM EXPENSE.
LIMITS OF LIABILITY AND DEDUCTIBLE
- Subject to the Limits of Liability, WE will only be liable to pay DAMAGES and CLAIM EXPENSE in excess of the DEDUCTIBLE shown in this policy. YOUR DEDUCTIBLE for DAMAGES and CLAIM EXPENSE for each CLAIM in any POLICY PERIOD is the each CLAIM amount shown in the Declarations. Each of YOU under the policy is individually liable for the payment of the DEDUCTIBLE. In the event that WE expend funds for DAMAGES or CLAIM EXPENSE on YOUR behalf, YOU will reimburse US for such expenditures up to the amount of the DEDUCTIBLE shown in this policy.
PRE-CLAIM ASSISTANCE
When WE receive YOUR written notice and WE, at OUR discretion, incur CLAIM EXPENSE to undertake measures to avoid any DAMAGES as a result of the reported WRONGFUL ACT, WE will waive the applicable DEDUCTIBLE.
However, the DEDUCTIBLE will always apply if a suit is filed, if an arbitration is filed or if any DAMAGES are paid.
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
