Lawyers' professional liability insurance? What risks does that typically cover?
Legal malpractice policies usually provide coverage for claims that arise from "wrongful acts" committed when providing legal services and provide both indemnification coverage and claims expense coverage. Covered acts also include a variety of services regularly provided by lawyers as an offshoot of their practices, such as:
- Acting as an officer, director, or member of a legal professional association
- Acting as a trustee or executor of an estate
- Services as a title agent
- Services as a notary public
Broader coverage can be added depending upon the lawyer's circumstances and the carrier's interest and capacity.
What is not covered?
The scope of coverage is relatively broad; however it is limited. Some activities, errors, and omissions may not be covered or are beyond the insurer's interest. These uncovered areas are referred to as "exclusions" and are delineated in a separate section of the policy.
Examples of common exclusions include:
- Malicious acts
- Criminal acts
- Dishonest acts
- Fraudulent acts
- Bodily injury or property damage
- Services rendered as a fiduciary under the ERISA Act of 1974
- Services rendered to a business enterprise owned by the insured
- Claims were the insured failed to alert the insurer
- Claims involving one insured in the same law firm
This article was provided by Insurance Consulting Services LLC, a leading provider of professional liability insurance for Lawyers.