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.
Travelers defines Professional Services as:
IV. DEFINITIONS
Z. Professional Services means only services in any of the following capacities, and pro-bono services in such capacities, provided that such pro-bono services are performed with the knowledge and consent of the Named Insured:
1. Lawyer.
2. Law clerk, paralegal, legal secretary or other legal support staff.
3. Arbitrator or mediator.
4. Lobbyist.
5. Notary public, provided that the Insured Person witnessed and attested to the authenticity of the signature notarized by such Insured Person.
6. Title Agent.
7. Administrator, conservator, receiver, executor, guardian, trustee or any similar fiduciary capacity, directly connected with the Insured’s practice of law.
V. EXCLUSIONS
B. Claims By An Insured Against Another Insured For Certain Legal Services
This policy does not apply to any Claim by any Insured against another Insured, provided that this exclusion will not apply to the Company’s duty to defend, or to pay Defense Expenses for, Claims by any Insured against another Insured that result from any Insureds capacity as a lawyer in connection with the following legal services:
1. Estates.
2. Trusts.
3. Probate.
4. Criminal defense.
5. Domestic relations.
6. Residential or commercial real estate closings.
C. Claims By Certain Persons Or Entities
This policy does not apply to any Claim brought by or on behalf of, or in the name or right of:
1. the Non-Profit Entity or any of its affiliates or subsidiaries;
2. the attorneys’ bar association; or
3. the directors, officers or trustees of the Non-Profit Entity or attorneys’ bar association,
in any Insured’s rendering of, or failure to render, Non-Profit Services, provided that this exclusion will not apply if the Claim is made and continued by or on behalf of such Non-Profit Entity or attorneys’ bar association without the solicitation, assistance, active participation or intervention of such Non-Profit Entity or attorneys’ bar association or their respective directors, officers or trustees.
F. Employee Retirement Income Security Act
This policy does not apply to any Claim based upon or arising out of any Insured’s services or capacity as a fiduciary under the Employee Retiree Income Security Act of 1974 and its amendments or any regulation or order issued pursuant thereto, except if an Insured is deemed to be a fiduciary solely by reason of legal advice rendered with respect to an employee benefit plan.
H. Government Demands Or Proceedings
This policy does not apply to any Claim based upon or arising out of a Network and Information Security Offense and brought by:
1. the Federal Trade Commission;
2. the Federal Communications Commission; or
3. any other federal, national, state, local, or foreign government, agency, or entity,
provided that this exclusion will not apply to any Claim made by such entity in its capacity as a customer or client of the Named Insured.
I. Intentional Misuse Of Money Or Property
This policy does not apply to any Claim based upon or arising out of:
1. any Insured’s conversion, commingling, defalcation, misappropriation or other intentional misuse or illegal use of funds, money or property;
2. the willful or intentional breach or disregard of any oral or written Title Agent underwriting or binding authority by any Insured,
in any Insured’s capacity as a Title Agent.
J. Management Capacity
This policy does not apply to any Claim based upon or arising out of any Insured’s capacity as a director or officer of any entity other than the Named Insured, provided that this exclusion will not apply to the Insured’s capacity as a director or officer of a Non-Profit Entity.
K. Management Or Equity Interest
This policy does not apply to any Claim based upon or arising out of Professional Services or Publishing for any entity that, at the time of the Wrongful Act, any Insured, or any Insured Person’s spouse, individually or collectively with one or more Insureds, manages, controls or has an equity interest which exceeds 15%.
L. Public Official Or Government Employee
This policy does not apply to any Claim based upon or arising out of any Insured’s capacity as a public official, or employee of a government body, subdivision or agency, provided that this exclusion will not apply to an Insured’s Professional Services for such government body, subdivision or agency if:
1. the Insured is deemed to be a public official or employee of such government body, subdivision or agency solely because of Professional Services to such entity; and
2. the remuneration for such Professional Services, if any, inures to the benefit of the Named Insured.
M. Securities, Real Estate Or Other Investments
This policy does not apply to any claim based upon or arising out of the promotion, sale or solicitation by any Insured of securities, real estate, or other investments.
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