It is important to remember the policy language in a lawyers professional liability insurance policy will differ, depending on the particular company. Therefore, the policy should be carefully read to determine the coverage your policy provides.
Most LPL policies will provide coverage to pay on behalf of the insured all sums, which the insured shall be legally obligated to pay as money damages because of a claim first made and reported during the policy period caused by an act, error or omission of the insured or any person for whose act, error or omission the insured is legally liable in rendering or failing to render professional services, subject to the terms, conditions and exclusions of the policy. The definitions section of the policy must be read as to what constitutes professional services. Whether coverage is provided for certain practice areas, such as securities or intellectual property, and whether a specific application must be completed and an endorsement issued, should receive careful attention.
Coverage is usually provided for those under the supervision of the insured for whose acts, errors or omissions the insured would be legally liable. This would usually include secretaries, law clerks and paralegals. Note Ohio Rules of Professional Conduct 5.1, 5.2, and 5.3 regarding ethical duties for those under supervision.
Coverage for attorneys who leave the firm or retire can present problems. Some policies provide coverage for former members of the firm or associates, if the firm continues to maintain coverage and the alleged malpractice occurred while the person who has left was with the insured firm. Some policies would provide coverage for the person who left only if that person is not in private practice when the claim is made. Pay attention to new hires, as prior acts coverage may not be available. This area must be examined very carefully as various policy language differs.
To learn more about a claims-made and reported lawyers professional liability policy, contact Ohio Bar Liability Insurance Company. Gretchen Mote, J.D., Director of Loss Prevention, or any of OBLIC’s Underwriters will be happy to answer your questions.
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