Awarded attorney’s fees normally are not covered under an attorney malpractice insurance policy. Associated damages such as civil or criminal fines, sanctions, or penalties ordered by a court or other administrative body are also usually not covered. Depending on the insurer’s legal malpractice insurance policy language look for this exclusion in 1 of 3 places; the insuring agreement, the definition section where damages or claims are defined or in the exclusion section of the policy.
In addition, demands for return of attorney’s fees by a client are not covered.
Fees can be a significant exposure to an attorney as attorney’s fees being awarded by the court to the other party can amount to millions of dollars.
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Lee Norcross, MBA, CPCU Managing Director, CEO (616) 940-1101 Ext. 7080 |
