Insurance Policy

Attorney Malpractice Insurance policies are not “All Risk” insurance contracts.  It is important to know what is covered in your policy.  Unfortunately, I normally get this question after the attorney is either threatened with sanctions or sanctions have been awarded:

From Attorney

“I recently was informed that coverage under a legal malpractice policy may or may not include sanctions.   Is this true and if so what does my policy provide.”

L Squared Response:

This is the definition of Damages from your Wesco Insurance policy.  This definition is very typical of most legal malpractice insurance policies:

E.  Damages” means judgements, awards and settlements if negotiated with the assistance and approval of the Company.

 Damages do not include:

1.       Legal fees, costs and expenses paid to or incurred or charged by the Insured, whether or not claimed as restitution of specific funds, forfeiture, financial loss, set-off or otherwise, and injuries that are a consequence of any of the foregoing;


2.       Any conversion, misappropriation, improper comingling or negligent supervision by any person of client or trust account funds or property or funds of any other person held or controlled by an Insured in any capacity or under any authority, including any loss or reduction in value of such funds or property;


3.       civil or criminal fines, sanctions, penalties or forfeitures, whether pursuant to federal, state or local law, statute, regulation or court rule and injuries that are a consequence of any of the foregoing;


4.       punitive or exemplary amounts and any multiplied portion of multiplied awards;


5.       any form of non-monetary relief;


6.       amounts for which the Insured is not financially liable or that are without legal recourse to the Insured.


7.       matters deemed uninsurable by operation of law.


Lee Norcross 
Contact Me Today
Lee Norcross, MBA, CPCU

Managing Director, CEO

(616) 940-1101 Ext. 7080 
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