Background:
This firm had 6 attorneys at the beginning of the policy year and is going to dissolve on December 31, 2017. The firm is planning on purchasing a 1 year Extended Reporting Period Endorsement (ERP) for the firm. Their current carrier Medmarc Casualty’s policy allows the purchase of individual attorney and firm ERP’s. Medmarc allows 60 days from the date of coverage termination to purchase an ERP. (Note all malpractice insurance carriers are different on this and it is important to check your malpractice insurance carriers policy for number of days allowed.)
An ERP is an endorsement that is attached to the last inforce policy and extends the reporting period beyond the termination date of claims made coverage. It does not change any other terms or conditions of coverage.
One of the concepts that many attorneys miss is that most Lawyers Processional Liability Insurance Policies are written on behalf of the firm and cover the attorneys for the firm (both past and present) while coverage is in force for covered past acts.
Question from firm:
“The firm is going to purchase a 1 year ERP. Can individual attorneys purchase individual ERP’s to extend coverage for those attorney individually beyond the 1 year ERP timeframe?”
Response to firm:
Medmarc does allow the purchase of individual ERP’s. The individual ERP will only cover that individual attorney for work that attorney has done. It will not cover the individual attorney for liabilities that attorney may have been assumed as a partner with the firm. It must be purchased with 60 days of cancellation date of the firm’s coverage. . The individual ERP’s will run concurrently with the Firm’s 1 year ERP. So if an individual attorney purchases a 3 year individual ERP starting on January 1, 2017, that ERP will run to January 1, 2020.
Please note that the answers giving here are only for this specific set of circumstances. Different Attorney Malpractice Insurance carriers have different rules for ERP’s. So it is important to check with your agent or insurance carrier prior to making any decisions on what your rights are and the best way to exercise that right.