What Professional Services does an Attorney Malpractice Policy Cover? – Hanover

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. 

Hanover defines Professional Services as:

D.         DEFINITIONS

Professional Services means advice given or services performed for others for a fee, as a

1.     Lawyer, mediator, collaborative lawyer, arbitrator, notary public, administrator, conservator, receiver, executor, guardian, trustee, or in any similar fiduciary capacity, but only if the services rendered are those ordinarily performed by a lawyer;

2.     Law clerk, paralegal, legal secretary, notary public, or other legal support staff;

3.     Title insurance agent, title abstractor (including providing title opinions or title certifications), title searcher, escrow agent, or closing agent;

4.     Speaker, author of legal treatises, presenter of legal seminars, or lobbyist;

5.     Expert witness only when retained to offer expert opinion on issues related to the law, legal procedures or practices, or the legal profession;

6.     Member of a formal accreditation, ethics, peer review, licensing board, standards review, bar association or similar professional board or committee; and

7.     Pro-bono services appointed by a court and pro-bono services on behalf of a Non-Profit Entity, in 1. and 2. above, performed with the prior written consent of the Named Insured.

 

Professional Services does not mean:

8. Any activity as a Certified Public Accountant, Insurance Broker or Agent (other than a lawyer acting as a Title Insurance Agent), or Real Estate Broker or Agent.

 

 

E.         EXCLUSIONS

 

1.         This Policy does not apply to Claim(s) or Supplemental Coverage Matter(s) based upon, arising out of, or in any way relating to, directly or indirectly:

 

e. ERISA

Any actual or alleged violation of the responsibilities, obligations or duties imposed by the Employee Retirement Income Security Act of 1974, including amendments relating to the Consolidated Omnibus Budget Reconciliation Act of 1985 and the Health Insurance Portability and Accountability Act of 1996, all as amended, and any similar federal, state, local or common law or statutory law anywhere in the world, and any rules and regulations promulgated thereunder;

 

k. Investment Advice

Any purchase, sale, or solicitation of an offer to purchase or sell, securities, real estate, or other investments, by an Insured; or any financial advice, investment advice, or referral regarding securities, real estate, or other investments, by an Insured; However this exclusion 1.k. does not apply to a court ordered sale of real estate for which the Insured engages a licensed real estate agent;

 

m. Related Entities

Services rendered to or failed to be rendered to, or claims made by, any business enterprise, charitable organization, pension, welfare, profit sharing, mutual or investment fund, or any entity not named in the Declarations in which any past or present lawyer, employee or other person affiliated with the Named Insured:

1)    Hold an interest of more than 15%, as a partner, member, principal or stockholder;

2)    Are an employee, manager, officer, or director at any time Professional Services were rendered or failed to be rendered; or

3)    Directly or indirectly control, operate or manage;

 

However, this exclusion 1.m. does not apply to a Claim by a non-profit entity for which You are only an officer or director.

 

o. Public Official

Any Insured’s services or capacity as a public official or employee of a government body, subdivision or agency thereof, unless:

1)    The Claim is brought by the government body, subdivision or agency thereof solely for rendering Professional Services to such governmental body, subdivision or agency on behalf of the Named Insured; or

2)    The Insured is deemed to have such capacity solely by rendering Professional Services to such governmental body, subdivision or agency on behalf of the Named Insured;

 

CLICK HERE TO OBTAIN AN ATTORNEY MALPRACTICE QUOTE

This blog is an excerpt from the policy.  The complete policy along with applicable endorsements could impact the information provided above.

 

    Managing Director, CEO
   

     (616) 940-1101 Ext. 7080