Call Us Today For A Free Quote | 866.940.1101
Professionals Insuring Professionals

Insurance PolicyConfusion with when a claim is covered by a claims-made policy can be costly.  One of the leading causes of claims being denied is just letting the coverage lapse assuming that there will continue to be coverage for past acts.

Attorneys continue to be confused with claims-made coverage as to if a claim is covered.  If the coverage is not in force at the time a claim is made there is no coverage.  Some attorneys assume that claims-made insurance coverage is like an occurrence policy in that if a covered act occurred during the time that coverage was inforce you can make a claim to that lapsed policy in the future.  This is not true.

Recently an attorney called that had their coverage cancelled for nonpayment of premium and wanted to report a disciplinary action.  Unfortunately we had to tell the attorney that there was no coverage currently inforce because the policy was cancelled for nonpayment of premium and as such there would be no coverage under the policy.  We did report the claim to the insurer and the insurer did deny the claim.

With claims-made coverage the four questions you need to answer to determine if there is coverage are:

1.      Was claims-made malpractice coverage inforce when the claim was reported to the insurer?

2.      What was the date that the covered act or error was alleged to have occurred? 

3.      When did the firm become aware of the claim?  Was it prior to the current inforce policy period or knowledge date?

4.      Is the retroactive (prior acts) date on the current inforce policy prior to the alleged act occurring?

If you cannot answer in the affirmative to the above 4 questions generally there is no coverage.

Law firms that let their claims-made coverage lapse without protecting their past acts have cost some law firms millions of dollars in uncovered insurance claims.

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
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
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

View Mobile Version
Quick Contact
We love referrals! And thank you even more for your continued business.
Customer Service
Self policy service any time of the day, directly from our website.
Join Our Newsletter
Stay in touch with the latest events, news and offers we have.
From Our Blog From Our Customers
Read More Read More
Facebook Twitter LinkedIn Google Maps
Stay In Touch With Us Helpful Site Links Contact Us
Sign up now to receive new and updates 5075 Cascade Rd. SE, Ste. E
Grand Rapids, MI 49546

Local: 616.940.1101
Toll Free: 866.940.1101
We have the expertise to find you the right coverage at the right price 
Powered by Insurance Website Builder