More than a few attorneys forget to take advantage of Disciplinary Coverage until it is too late. Attorney Malpractice Insurance policies that offer this coverage can be ‘Duty to Defend’ or ‘Reimbursement’. The ProAssurance disciplinary coverage is
“Duty to Defend’. Policy wording for disciplinary coverage and reporting differs by carrier. The disciplinary coverage is not subject to the policy deductible.
Policy Coverage:
5.6. ATTORNEY DISCIPLINE DEFENSE
5.6.1. The Company shall pay up to $25,000 for the reasonable fees of an attorney assigned by the Company, or with the Company’s written consent, to defend an Insured in an investigation or action by a bar association, disciplinary board, or other similar entity, which may restrict or rescind the Insured’s ability to practice as a lawyer, provided that such investigation or action
a) is first made against an Insured and reported to the Company during the policy period;
b) involves acts, errors, or omissions that first occurred on or after the Retroactive Date;
c) results from professional services that were or should have been rendered by such Insured; and
d) does not involve acts, errors, or omissions for which coverage for claims would be excluded by Section 4.1.
5.6.2. The Company will not pay more than an aggregate total of $50,000 per policy period under Section 5.6.1 regardless of the number of such investigations or actions or the number of Insureds subject to such investigations or actions. The Company reserves the right in its sole discretion to determine the priority of payment under this section. Any payments made by the Company under Section 5.6.1 shall be in addition to the Limit of Liability shown in Item 4 of the Declarations.
5.6.3. In the event an Insured receives notice of such investigation or action, the Insured must:
a) immediately give notice of the investigation or action to the Company; and
b) forward every request, notice, summons, or other communication received by the Insured to the Company.
5.6.4. All of the terms and conditions of this policy shall apply with respect to the Attorney Discipline Defense provided under Section 5.6.1, except that Section 5.6.1 is not subject to any Deductible.
5.6.5. There shall be no extended reporting period for the coverage provided in Section 5.6.
Not taking advantage of this policy coverage does not make sense. Firms have a fear that reporting disciplinary complaints can impact their attorney malpractice insurance premiums. While too many disciplinary reported complaints that do not result in an issue can cause problems. Not reporting issues that may lead to a proceeding may impact your malpractice insurance should the same issue turn into a malpractice claim at a later date. The other issue is that once a year you may need to attest on the renewal application about disciplinary issues.
CLICK HERE TO GET AN ATTORNEY MALPRACTICE QUOTE
Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080