The reality of attorney malpractice insurance policies is paying the deductible when a claim is 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 QBE policy are:
V. LIMIT OF LIABILITY AND DEDUCTIBLE
F. No Deductible will apply to Damages or Claim Expenses for Claims that result from the rendering of, or failure to render, pro-bono services in the Insured’s capacity as a lawyer.
VI. DEFENSE, INDEMNIFICATION AND COOPERATION
D. If the Insurer and the Named Insured agree to the final settlement of a Claim with the claimant during the initial voluntary mediation of that Claim or within thirty (30) days after participation in such mediation, the Named Insured's Deductible obligation for such Claim will be reduced by fifty (50%) percent subject to a maximum reduction of $25,000. Deductible payments made by the Named Insured prior to the application of the above credit will be reimbursed within thirty (30) days of the resolution of the Claim. This reduction does not apply to any Claim resolved through voluntary or involuntary arbitration.
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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, CPIA
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