What Professional Services does an Attorney Malpractice Policy Cover? – Hudson

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 legal services (professional services) definition against the services that your law firm provides. 

Hudson defines Legal Services (Professional Services) as:

 

VII.       DEFINITIONS

 

D.        Controlling Interest means the right of an Insured or a member of an Insured’s Immediate Family, directly or indirectly, to:

1.      own 10% or more of an interest in an entity; or

2.      vote 10% or more of the issued and outstanding voting stock in an incorporated entity; or

3.      elect 10% or more of the directors of an incorporated entity; or

4.      receive 10% or more of the profits of an unincorporated entity; or

5.      act as general partner of a limited partnership, managing general partner of a general partnership, or comparable position in any other business enterprise.

 

G.        “Domestic Partner” means any natural person who enters into a civil union or qualifies as a domestic partner under any federal, state or local law or under the provisions of any formal program established by the Named Insured.

 

H.        Immediate Family means:

1.      the Insured;

2.      the Insured’s spouse or Domestic Partner;

3.      the Insured’s parent(s), adoptive parent(s) or step-parent(s);

4.      the Insured’s sibling(s) or step-sibling(s);

5.      the Insured’s child(ren), adoptive child(ren) or step-child(ren).

 

J.         Legal Services means those services performed by an Insured as a licensed lawyer in good standing, arbitrator, mediator, title agent, notary public, administrator, conservator, receiver, executor, guardian, trustee or in any other fiduciary capacity but only where the act or omission was in the rendition of services ordinarily performed as a lawyer. Legal Services will not be extended to include services rendered as a real estate agent or broker or as an insurance agent or broker.

 

IV.        EXCLUSIONS

This policy will not apply to any Claim, Disciplinary Proceeding or non-party subpoena based upon or arising out of, in whole or in part:

 

D.        the Insured’s capacity or status as:

1.      an officer, director, partner, trustee, shareholder, manager or employee of a business enterprise, charitable organization or pension, welfare, profit sharing, mutual or investment fund or trust;

2.      a public official, or an employee of a governmental body, subdivision, or agency unless the Insured is privately retained solely to render Legal Services to the governmental body, subdivision or agency and the remuneration for the Legal Services is paid directly or indirectly to the Named Insured;

 

E.        the alleged acts or omissions by any Insured, with or without compensation, for any business enterprise, whether for profit or not-for profit, in which any Insured has a Controlling Interest;

 

F.         any alleged violations of the Employment Retirement Income Security Act of 1974, its amendments, or any regulations or orders promulgated pursuant thereto;

 

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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.

    Managing Director, CEO
   

     (616) 940-1101 Ext. 7080