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 definition against the services that your law firm provides.
StarStone defines Professional Services as:
SECTION VII. DEFINITIONS
K. Professional Services means:
1. Services performed or advice given by the Insured in the Insured’s practice as a lawyer, arbitrator, mediator, title agent or lobbyist;
2. Services as a notary public;
3. Services as a trustee, administrator, conservator, executor, guardian, receiver or similar fiduciary capacity except when any Insured is a beneficiary or distributee of any trust or estate serviced and the fee accruing from such work inures to the benefit of any Insured;
4. Advice given or services performed in connection with any professional institute or any standards board or any other professional body whether or not it is performed on behalf of the Named Insured;
5. The publication or presentation of legal research papers or similar legal materials, but only if direct pecuniary compensation per publication or presentation is less than $3,000;
6. Services performed by the Insured in the course of a lawyer-client relationship on behalf of one or more clients shall be deemed for the purpose of this section to be the performance of Professional Services for others in the Insured’s capacity as a lawyer, although such services could be performed wholly or in part by non-lawyers;
7. Services as stated in K.1.-6. above when performed as legal pro bono work.
SECTION VI. EXCLUSIONS
This insurance does not apply to Claims:
B. Based on or arising out of the rendering of or failure to render Professional Services by any Insured in their capacity as an employee, owner, partner, stockholder, director or officer of any sole proprietorship, partnership or corporation or other business enterprise which is not defined as Named Insured, Predecessor in Business or Successor in Business; investments;
D. Based on or arising out of any obligations for which an Insured or any carrier acting as his insurer may be liable under any workers’ compensation, unemployment compensation, disability, retirement plan, pension or pension benefits law, or any similar laws, including but not limited to, the Employee Retirement Income Security Act of 1974, Public Law 93-406 (ERISA), or any of its amendments, or any other similar state or local law, or any non-qualified plan, while any Insured is acting as a fiduciary within the meaning of said laws. This exclusion shall not apply if an Insured is deemed to be a fiduciary solely on the basis of rendering legal advice with respect to a particular employee benefit plan;
E. Based on or caused by any Insured acting in the capacity of trustee or administrator of any kind of an employee benefit plan, pension, retirement, or profit sharing plan, or investment pool, fund or trust;
F. Based on or arising out of Professional Services performed for any entity, other than the Named Insured, which at the time of the act, error, omission or Personal Injury giving rise to the Claim, was owned, controlled, managed or operated by any Insured. This exclusion shall not apply if at the time the Professional Services were rendered, the percentage of ownership in such entity, by any Insured, their spouse, or a cumulation of Insureds, did not exceed 10%;
J. Based on or arising out of an Insured acting or serving as an elected or appointed public official or employee of any governmental agency, body or subdivision. However, this exclusion shall not apply to any Claim made which arises solely and exclusively from the performance of Professional Services by an Insured for the governmental agency, body or subdivision;
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