The reality of attorney malpractice insurance policies is paying the deductible when a claim is made against the law firm. For an additional premium Insurers may offer for 1st dollar defense which addresses claims expenses for claims with no indemnity payment made or an aggregate deductible for multiple claims brought in any one policy year. But insurers may also have features built into their policies that reduce your deductible obligation. Valuable policy features mean that there is more than policy premiums that should be compared prior to making an insurer coverage decision. As every law firm is unique, policy features important to one insured are not important to another insured.
Additional deductible reducing features are not found in the Arch policy.
III. LIMITS OF LIABILITY AND DEDUCTIBLE
B. DEDUCTIBLE
1. The deductible amount shown in Item 4.A. of the Declarations will apply to all Damages and Claim Expenses for each and every Claim. The deductible will be applied first to Claim Expenses with any remainder applied to Damages.
2. The Company’s obligation to pay or to reimburse is in excess of the deductible. The Deductible amount described above is included within and not in addition to the Limit of Liability for Insuring Agreement A. The Named Insured will pay the deductible within thirty (30) days of demand by the Company.
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This blog is an excerpt from the policy. The complete policy along with applicable endorsements could impact the information provided above.
Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080