Letting your Attorney Malpractice insurance lapse has consequences. Attorneys sometimes see the ‘Automatic’ Extended Reporting Period Endorsement section in many malpractice policies and think this is a grace period. A through reading of the paragraph normally states that the only time this option can be exercised is if the insured has not renewed coverage with any insurer. Your firm does not have an extension of coverage unless the insurer states so in writing. There is no grace period.
Trusting the US Mail to deliver your application, acceptance or payment is now risky. The announced mail delivery changes can cause your coverage to lapse if the documentation and payment are not received on a timely basis. Insurers continue to tighten their backdating underwriting guidelines. Letting coverage lapse leaves few good options.
L Squared offers electronic alternatives to help prevent coverage lapses:
1. Email and faxes are the preferred method for receiving applications
2. Some insurers permit online applications
3. Acceptances of coverage can be emailed
4. L Squared has an E Payment web page for a fee that you can make ACH or credit card payments
5. The L Squared ACH form can be filled out and emailed back at no charge
6. The premium finance company permits over the phone payments
7. Premium financing can be set up to electronically withdraw payments
8. Direct bill payments can be set up for automatic withdrawal
Having claims-made coverage lapse can cost your prior acts coverage. Now more than ever before it is important to be timely with completing applications and making payments.
Contact Me Today
Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080