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Copyright ISBA Mutual Insurance Company 2018 1
Secrets of a Lawyers’ Professional Liability PolicyLearn What Most People Don’t Know About a Claims Made Policy
Secrets Should Not Exist – But They Do!
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Copyright ISBA Mutual Insurance Company 2018 2
Secret Number One – Liability Insurance is Different by Design
Occurrence Policy: your coverage and limits of liability survive after the expiration of the policy.
Claims Made and Reported Policy: your coverage and limits of liability are only available during the policy term or any extended reporting period.
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The Culprit
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Copyright ISBA Mutual Insurance Company 2018 3
Secret Number Two – Policy Gems
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Hidden Gems in the Policy
► Insuring/Coverage Agreement
► Right and Duty to Defend
► Claims Expenses Paid Prior to Deductible
► Subpoena Assistance for Testimony or Documents
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Hidden Gems in the Policy
► Supplementary Payments
► Paid In Addition to the Limits of Liability
► Loss of Earnings Payments
► Disciplinary Proceeding Defense
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Secret Number Three – Who is Covered?
► Definitions
► NAMED INSURED is the Lawyer or Law Firm to Whom the Policy is Issued
► Policy Is Not Portable
► Wrongful Act
► Any Actual or Alleged Negligent Act
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Copyright ISBA Mutual Insurance Company 2018 5
Named Insured – Client Perspective
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Smith
Jones
Smith & Jones
Law Office of Tom Smith
Mary Jones, LTD
John Clark
Tom X. SmithMary Z. Jones
Of CounselJohn Q. Clark
Secret Number Four – Prior Acts Date Get Back to the Beginning
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Copyright ISBA Mutual Insurance Company 2018 6
Policy Dates
► Effective Date
► Prior Acts Date/ Retroactive Date
► Expiration Date
Claim Dates
► Occurrence/ Wrongful Act Date
► Claim Made Date
► Claim Report Date
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Secret Number Four – Dates Matter
The Policy Timeline – One Year Period
Effective Date
Expiration Date
Occurrence/Wrongful Act Date
Claim Made Date
Report Date
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Copyright ISBA Mutual Insurance Company 2018 7
The Policy Timeline – Your Career
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Prior Acts Date
Effective Date
Expiration Date
CurrentPolicy PeriodPolicy PeriodPolicy Period
Coverage Period
Secret Number Five – You Have an Expert to Help
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Copyright ISBA Mutual Insurance Company 2018 8
What is a Wrongful Act?
► Incident or Claim
► Risk Management Hotline
► Does Not Hurt You to Call Them
► Claims Must Be Reported in Writing
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Is It Covered? Maybe!► Conditions
► Statements in Application are Accurate
► Insured Will Assist and Cooperate to Resolve Claim
► Changes are Reported in a Timely Manner
► Timely Notice of a Claim
► Notice of Suspension or Disbarment
► Voluntary Payments are not Covered
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Copyright ISBA Mutual Insurance Company 2018 9
Is It Covered? Maybe!► Exclusions
► Prior Knowledge/Late Notice of a Claim
► Criminal, Dishonest, Fraudulent Acts
► Work on Behalf of Entity other than the Named Insured
► Work Done on Lawyer’s Own Behalf
► Bodily Injury and Property Damage
► ERISA, and other Employee Benefit Claims
► Investment or Financial Advice
► Work on Behalf of a Government Entity
► Punitive Damages
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Secret Number Six – Don’t Drop the Rope
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The Timeline – Coverage Lapse
Prior Acts Date
Effective Date
Expiration Date
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CurrentPolicy PeriodPolicy PeriodPolicy Period
Coverage Period Not covered
The Timeline – Extended Reporting Period
Prior Acts Date
Effective Date
Expiration Date
Extended Reporting
Date
Tail or Extended Reporting Period
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Coverage Period
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Copyright ISBA Mutual Insurance Company 2018 11
Six “Secrets” Revealed
► Occurrence vs Claims Made Policy
► Know the Benefits You Have
► Named Insured
► Policy and Claims Dates
► Call the Experts
► Know your Extended Reporting Period Endorsement
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Thank You