The reality of attorney malpractice insurance policies is paying the deductible when a claim in made against the law firm. For an additional premium Insurers may offer for 1st dollar defense which addresses claims expenses for claims with no indemnity payment made or an aggregate deductible for multiple claims brought in any one policy year. But insurers may also have features built into their policies that reduce your deductible obligation. Valuable policy features mean that there is more than policy premiums that should be compared prior to making an insurer coverage decision. As every law firm is unique, policy features important to one insured are not important to another insured.
Deductible reducing features with the Aspen American policy are:
II. LIMITS OF LIABILITY AND DEDUCTIBLE
1. The deductible amount shown in Item 5. of the Declarations is the Insured's obligation for each claim and applies to the payment of damages and claim expenses. The deductible will be paid by the Named Insured, or upon the Named Insured’s failure to pay, jointly and severally by all Insureds, within thirty (30) days of the Company’s demand for payment. The limits of liability set forth in the Declarations are in addition to, and in excess of, the deductible.
2. If within one (1) year following the date a claim is reported in writing to the Company, the claim is resolved by agreement, with the consent of the Named Insured and the Company, as reflected in a signed settlement agreement, the Named Insured will be reimbursed or credited 50% of the deductible, but not to exceed a reimbursement or credit of $10,000 per claim and $25,000 per policy period for all such claims resolved or concluded in accordance with this Subsection.
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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
(616) 940-1101 Ext. 7080