What does it mean if my defense costs are outside the limit of liability?

Who is considered a "named insured"?

What is the meaning of a "consent to settle" clause?

What are my extended reporting period options?

What options are available to part-time attorneys and of-counsel?

What should I know about prior acts coverage and my retroactive date?

What sort of claims free discounts or continuing legal education discounts will I be offered?

What is the financial strength of the carrier so important?

What risk management resources will be provided to our firm?

Why must I partner with an insurance agency that possesses expertise and industry knowledge?

 

Q- What does it mean if my defense costs are outside the limit of liability?

A- You purchase a lawyers professional liability insurance policy in the event of a claim being brought against you based on an act or omission in your rendering or failing to render legal services for others. You carefully elect your limit of liability with the understanding that this amount will be available to cover all damages covered by your policy. However, if your defense costs are part of or "inside" your limit of liability, it means that each dollar spent on claim expenses, such as the cost of defending your claim, is one less dollar available to pay for damages.

As you know, claim expense costs can be extremely expensive. When those costs exhaust your available limit of liability, your carrier's obligation to investigate, defend and cover your claim is terminated and you end up paying settlements or judgments and costs out of your own pocket.

If preserving your available limit of liability is important to you, you may want to consider a policy that provides for defense costs to be paid partially outside the limit of liability. Let the professional liability specialists at C&R Insurance Services find the insurance program that works best for you.

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Q- Who is considered a "named insured"?

A- How your policy defines "named insured" is critical to determining who will be covered in the event of a claim. Understanding whether your policy provides coverage to newly hired attorneys, legal secretaries, paralegals, contract attorneys, or other legal office staff members is essential to your receiving complete and total coverage.

For example, a new lawyer is hired and your firm administrator forgets to add that person to your policy. Then, the new lawyer is sued. Are you covered for this claim? Some programs provide a very broad definition of "named insured" and in the above example, your firm will be protected. Call C&R Insurance Services to learn more about what program offers such protection.

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Q- What is the meaning of a "consent to settle" clause?

A- When a professional, such as an attorney, is sued, there is more at stake than just the cost of defending the lawsuit and the potential for paying damages. Your reputation lies in the balance and accordingly, you have a serious interest in how your claim is settled. While reputable carriers are well prepared to effectively handle your claim, you may require the additional piece of mind found in a "consent to settle" clause.

Generally speaking, a "consent to settle" clause states that a carrier shall not settle any claim without the consent of the insured, which consent shall not be unreasonably withheld. Some policies may even provide a "mutual consent to counsel" endorsement, allowing you to have a say in who your carrier selects to defend your claim. If such policy provisions are important to you, please contact your lawyers professional liability specialist at C&R Insurance Services.

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Q- What are my extended reporting period options?

A- Understanding your extended reporting period or "tail" coverage options is critical to your maintaining sufficient, continuous insurance coverage. A standard professional liability claims made and reported policy affords you coverage for claims that occur and are reported to your carrier during the policy period.

Once you cancel or non-renew your policy, you may no longer be covered for any claims that were not reported to your carrier, even if the claim occurred during the policy period. An extended reporting period provides a specific, additional length of time in which reported claims will be covered, even if your policy is no longer in effect.

Extended reporting period options can be available in a variety of ways: from an automatic extended reporting period that automatically offers you an extended period of time (such as 30 days) after the termination of your policy period to report a claim first made against you during the policy period; to specific extended reporting periods that can be priced accordingly and range anywhere from 1 year to unlimited; to a non-practicing tail that provides a non-practicing or retired attorney with an unlimited extended reporting period for reporting all claims that occurred during the policy period; to a disability extended reporting period that is available, often at no additional premium, in the event that you become totally or permanently disabled. C&R Insurance Services can provide you with detailed information on all your extended reporting period options.

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Q- What options are available to part-time attorneys and of-counsel?

A- Your firm is unique and not every attorney is employed in the same capacity. Accordingly, why should you have to pay the same amount for insurance to cover attorneys that work less than full-time? Some programs offer a reduced premium for part-time attorneys or of-council. If this benefit matters to your practice, ask C&R Insurance Services about whether this is an option for your firm.

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Q- What should I know about prior acts coverage and my retroactive date?

A- Most applications for a lawyers professional liability policy require that you provide a retroactive date. What you are being requested to provide here is the date when you first began receiving continuous lawyers professional liability insurance coverage. For example, if your first lawyers professional liability policy had an effective date of January 1, 2000, and you changed carriers and policies every year since then but always maintained continuous coverage, your retroactive date would be January 1, 2000.

Why is this important? Some policies afford full prior acts coverage, meaning even your actions that occurred during a different policy period will be covered if the claim arising from those actions is reported during the current policy period. Therefore, providing a retroactive date informs a carrier offering full prior acts coverage exactly how far back a potential claim may have arisen. Prior acts coverage is often a complicated, yet extremely important, aspect of your professional liability policy and should be fully understood. C&R Insurance Services is available to explain this in more detail should you have any questions.

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Q- What sort of claims free discounts or continuing legal education discounts will I be offered?

A- It seems so obvious that better insurance risks should receive lower premiums. However, not all lawyers professional liability programs adequately take into account the individual history and actions of potential insureds. If you have never been involved in a claim or, even if you had a claim but it was a number of years ago, you may be entitled to a claims free discount. Likewise, if you take positive steps toward improving your practice by utilizing continuing legal education opportunities, your premium should reflect such actions.

If your claims history and continuous professional improvement through continuing legal education make you a preferred risk, you will want such positive factors to influence your insurance costs. C&R Insurance Services can assist you with getting this information to the carrier and making a positive impact on your premium.

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Q- What is the financial strength of the carrier so important?

A- The financial strength of your carrier can be measured in a number of ways: from analyzing the carrier's balance sheet strength, operating performance and business profile. Comparisons to peer and industry standards as well as assessments of a carrier's operating plans, philosophy and management are also factors to consider. A number of independent companies issue opinions and ratings on the financial strength of insurance organizations.

You should remain aware of your carrier's financial strength because financial stability is an indicator of your carrier's ability to meet its obligations to policyholders, such as yourself. If you are interested in learning about the resources available to you for obtaining information on your carrier's financial strength, contact C&R Insurance Services.

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Q- What risk management resources will be provided to our firm?

A- In the highly specialized area of lawyers professional liability insurance, it takes more than just issuing a policy for an agent or carrier to adequately service an insured. Likewise, prompt service and superior claims handling are to be expected. As a professional, you deserve to have your agent and carrier provide you with resources that protect your practice and make you a better risk. Tools, such as online legal research, risk management information, newsletters, ethics rules, etc. should be available to you as part of your professional liability insurance program.

Additionally, when problems occur in your practice, you need to have a confidential resource for discussing such incidents and how you can minimize the potential for a malpractice claim. Professionalism, confidentiality and responsiveness cannot be comprised. Let the lawyers professional liability experts at C&R Insurance Services provide you with an insurance program that offers all these qualities.

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Q- Why must I partner with an insurance agency that possesses expertise and industry knowledge?

A- You stay informed with the latest court cases, regulatory issues and changes in the law, but who is keeping you informed of the constant changes to your professional liability insurance? What do you know about the malpractice issues that directly affect you and your firm? The lawyers professional liability specialists at C&R Insurance Services will keep you informed about the latest trends in the professional liability market.

C&R Insurance Services specializes in lawyers malpractice insurance and this dedicated focus provides clients with knowledge and advice on protecting your practice and your reputation. Exceptional service and prompt, personal attention are always provided. As a professional, you deserve nothing less.

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