If your law office moves out of state notify all your property & casualty insurance carriers as soon as possible. Notifying your attorney malpractice insurer is essential. Do not wait until renewal.
You can expect that each insurer will either cancel your coverage midterm or non-renew your insurance. Even if your agent and insurer are licensed in the new state this will occur. Why will this happen? Policy forms filed for even the same insurer may differ from state to state. Different states have different policy forms and insurance laws that insurers must comply with. The cancel and rewriting process is straight forward for Business Owners (BOP) and Workers Compensation policies but pay close attention to the attorney malpractice coverage.
What is so special about attorney malpractice insurance? Attorney malpractice insurance policies are written on a claims-made policy form. Malpractice insurers are reluctant to provide past acts coverage for other states. The policy forms may be different and more importantly your new insurer may not be licensed for attorney malpractice insurance in your old state. Plan to receive cancelations midterm or being non-renewed at renewal by your incumbent insurer.
Expect to cover your past acts coverage by exercising your rights under the policy by purchasing an Extended Reporting Period Endorsement (ERP) or tail from your incumbent insurer. Your rights to purchase an ERP are time sensitive. Typically within 30 or 60 days from coverage termination this right is likely expiring. Don’t expect to obtain past acts coverage in your new state. Purchase the ERP as soon as possible.
Your quest for new coverage is always easier if your agent is licensed in both states. L Squared Insurance Agency is licensed in all 50 states. The good news is your new policy is without past acts coverage and is less expensive than a “fully rated” policy. But your premiums may be higher or lower depending on your new state and carrier rates.
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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
