Careful planning by an attorney may save the attorney thousands of premium dollars when contemplating retirement (leaving private practice). Not all insurers offer a retirement tail (ERP or Extended Reporting Period Endorsement). Purchasing the same coverage may cost over 3 times the expiring premium.
Attorney Malpractice Insurance Policies are claims-made and reported policies. When coverage ends the ability to report claims for past acts ends at policy termination. Attorneys leaving private practice via retirement, becoming a judge or working in the private or public sector need to protect their past acts. For solo practitioners and/or small firms that may close once the practitioner leaves, the nonpracticing Extended Reporting Period Endorsement/Retirement Tail (ERP) may be an answer.
Note: For attorneys closing or leaving their small firm to work at another law firm the nonpracticing Extended Reporting Period Endorsement/Retirement Tail (ERP) is not an option. Coverage for their past acts is outside of the scope of this blog.
Each insurer’s policy requirements differ in obtaining this valuable ERP endorsement at no or a reduced cost. The ability for requesting a time sensitive ERP differs by insurer. The attorney must completely stop private practice to obtain the nonpracticing ERP.
Click here for retirement/non-practicing tail requirements for 30 different Admitted Insurers
Lee Norcross, MBA, CPCU, CPIA
Managing Director, CEO
(616) 940-1101 Ext. 7080