Attorneys wear many hats. Attorney malpractice insurance provides coverage for most hats but not all. A malpractice insurer’s definition(s) of professional services may cause coverage issues for attorneys that perform certain client services. If the services are provided using a license other than a law license, it is a good bet that it is not covered. When looking for the appropriate insurer, check the professional services (legal services) definition against the services that your law firm provides.
Golden Bear defines Legal Services (Professional Services) as:
IX. DEFINITIONS
Q. Legal Services means professional services rendered by an Insured as:
1. a lawyer;
2. a paralegal;
3. a title insurance agent, provided such professional services are pursuant to a written agency agreement with a licensed title insurance company;
4. a notary, mediator, arbitrator, administrator, conservator, receiver, executor, guardian, trustee, court-appointed trustee, or any other fiduciary role;
5. a member, director or officer of any non-profit professional legal association, ethics or peer review board, formal accreditation or licensing body, or similar committee related to the legal profession; or
6. as a government advisor or lobbyist.
Coverage with respects to Legal Services shall only apply for such professional services performed by an Insured for remuneration inuring to the benefit of the Insured, or on a pro bono basis, but solely if, prior to the rendering of Legal Services, an Executive Officer of the Insured approved the performance of such Legal Service without a fee.
V. EXCLUSIONS
This Policy does not apply to any Claim, and the Company shall have no duty to defend or to make any payment for Loss, Claims Expenses, or Coverage Enrichment pertaining to any Claim made or Disciplinary Proceeding brought against any Insured which alleges, is based upon, pertains to, involves, or in any way arises out of:
S. The Company will not be liable for any Loss or Claim based upon or arising out of Wrongful Acts committed by an Insured as respects to:
1. the Employee Retirement Income Security Act of 1974;
2. the Securities Act of 1933;
3. the Securities Exchange Acts of 1934;
4. any state Blue sky or securities law;
5. the Crime Control Act of 1970 (also known as the Racketeer Influenced and Corrupt Practices Act or RICO);
6. anti-trust law violation or any agreement, conspiracy to restrain trade or unfair trade practice; or any rules, regulations or amendments in relation to such acts, or any similar state, federal or foreign statutes or regulations, including any Claim based upon common law principles of liability pertaining to the same subject matter as the above-mentioned acts, laws or regulations.
CLICK HERE TO OBTAIN AN ATTORNEY MALPRACTICE QUOTE
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