Attorneys wear many hats. Attorney malpractice insurance provides coverage for most hats but not all. A malpractice insurer’s definition(s) of professional services may cause coverage issues for attorneys that perform certain client services. If the services are provided using a license other than a law license, it is a good bet that it is not covered. When looking for the appropriate insurer, check the professional services definition against the services that your law firm provides.
Greenwich defines Professional Services as:
III. DEFINITIONS
R. Professional Services means only services in any of the following capacities, and pro-bono services in such capacities, provided that such pro-bono services are performed with the prior knowledge and consent of the Named Insured:
1. Lawyer;
2. Law clerk, paralegal, legal secretary or other legal support staff;
3. Arbitrator or mediator;
4. Lobbyist;
5. Notary public;
6. Title Agent;
7. Administrator, conservator, receiver, executor, guardian, trustee or any similar fiduciary capacity, directly connected with the Insured’s practice of law;
8. The Insured’s activities in publishing or presenting an article or speech related to the practice of law that does not pertain to the representation of a particular client; or
9. The Insured’s activities as an officer, director or member of a board of a not-for-profit bar association organization, lawyer disciplinary board or committee, or any similar bar related organization, which promotes or regulates the practice of law.
IV. EXCLUSIONS
This Policy does not apply to:
B. Any Claim arising, in whole or in part, out of any Insured’s capacity as:
1. A former, existing or prospective officer, director, shareholder, owner, partner, manager, trustee, or employee of a business enterprise or charitable organization or a pension, welfare, profit-sharing, mutual or investment fund or trust. This exclusion applies to a Claim arising out of the formation of such entity and to a Claim by or on behalf of such entity and related entities, or by or on behalf of former, existing or prospective officer(s), shareholder(s), partner(s), manager(s), owner(s), trustee(s), or employee(s) of such entity or related entities. This exclusion does not apply to any Professional Services listed in Section III.R.9; or
2. A public official or an employee of a governmental body, subdivision or agency.
C. Any Claim by or in connection with any business enterprise, not named in Item 1. of the Declarations, in which:
1. The Insured(s) own, individually or collectively, more than a fifteen percent (15%) interest;
2. Any Insured is a partner or employee; or
3. Said business enterprise is directly or indirectly controlled, operated, or managed by any Insured or the Insured’s spouse or domestic partner, other than solely in a fiduciary capacity;
E. Any Claim for an actual or alleged violation of any responsibility, obligation or duty imposed by the Employee Retirement Income Security Act of 1974, or amendments thereto or regulations thereunder or any similar foreign, state, local or common law;
G. Any Claim based upon or arising out of any Insured’s capacity as a beneficiary or distributee of any trust or estate;
L. Any Claim based upon or arising out of the promotion, sale or solicitation by any Insured of securities, real estate, or other investments; and
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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.
Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080