The market for Lawyers Malpractice (E&O) Insurance has always been fairly limited, however in recent years with the explosion of malpractice suits and awards running into six and seven figures has resulted in underwriters applying even greater scrutiny to the applications of law firms applying for malpractice coverage. Even though the claims have been on the rise, there are insurance companies willing to consider this coverage.

The policy affords coverage against claims arising out of the professional errors and omissions of the Insured, brought by the public and clients represented by the Insured. The policy will not only pay awards as assessed against the Insured, but will also defend suits alleging negligent acts which are covered by the policy and pay defense costs. Because there is no standard policy for this type of Insured, we can help point out the advantages and disadvantages of the options we secure on your behalf.

IMPORTANT FEATURES/POLICY ENHANCEMENTS

EMPLOYED LAWYERS

Allegations of negligence, errors and omissions often result in costly and lengthy litigation. Professionals in all industries are at risk of being sued. Whether the changes are real or perceived, defense costs alone place a hefty burden on the individual(s) and/or organization involved. In growing numbers, lawyers employed by corporations are being held liable as they become increasingly involved in sensitive, complex issues. Any perceived shortcomings in legal services, even in the course of pro bono services, may bring litigation that names the employing corporation/association as well as individual attorneys. Every public corporation and large private company/association needs to consider this coverage.

Who needs this coverage?

• Attorneys employed by an organization other than a law firm who perform legal services for the clients and vendors for their employer.
• Attorneys employed by an organization other than a law firm, who perform “moonlighting” legal services outside the scope of their job.
• Organizations, except for law firms, who employ in-house attorneys to perform legal functions.

Coverage Highlights

Insured is a company’s legal department, individual counsel and employed lawyers providing corporate, pro bono and/or moonlighting services of a legal nature against claims of actual or alleged breach of duty, negligence, errors or omissions.

• Coverage for claims by non-client third parties.
• Coverage for SEC and regulatory claims.
• No deductible for claims not indemnified by the employer, and full reimbursement coverage (subject to a self-insured retention) for indemnified claims.
• Coverage for claims by individual employees the in-house attorney is assigned to represent.
• Defense cost coverage for claims brought by the employer, the board of directors, and officers.
• Pro bono coverage for employer-approved pro bono representations.
• Choice of defense counsel option available for qualifying Insured(s).