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. 

Westfield defines Professional Services as:

 

III.        DEFINITIONS

P.    Professional Services means the services provided to others by an Insured for a fee (regardless of whether such fee is actually collected) or, if pro bono, with the prior approval of the Named Insured, as:

(1)   an attorney in the conduct of any business by or on behalf of the Named Insured in its professional capacity;

(2)  a notary public, including a virtual notary public, provided that the Insured witnessed and attested to the authenticity of the signature notarized by such Insured;

(3)  an administrator, conservator, executor, escrow agent, trustee, guardian, receiver, or committee or in any similar fiduciary capacity incidental to the practice of law by the Named Insured;

(4)  an arbitrator or mediator;

(5)  a member, director, or officer of any lawyer disciplinary board or committee, or any professional legal association, its governing board, or any of its committees;

(6)  an expert witness, provided that such Insured was retained to offer expert opinion on issues specific to the law, legal procedure or practice, or the legal profession

(7)   a government affairs advisor or lobbyist; or

(8)  a title insurance agent pursuant to a written agency agreement with a licensed title insurance company.

Professional Services shall also include an Insured’s activities in publishing or presenting an article or speech related to the practice of law that does not pertain to the representation of a particular client.

 

IV.        EXCLUSIONS

The Insurer shall not be liable for Loss on account of any Claim:

B.         Director/Officer/Fiduciary and Outside Capacity

based upon, arising from, or in consequence of:

(9)  any Insured acting or allegedly acting in the capacity as a director, officer, shareholder, partner, manager, or member of any entity (other than the Named Insured), a lawyer disciplinary board or committee, or a professional legal association, its governing board or any of its committees;

(10)  a trustee of a pension, welfare, profit-sharing, mutual, or investment fund or investment trust;

(11)  a fiduciary under the Employee Retirement Income Securities Act of 1974, any rules or regulations promulgated thereunder, all as amended, or any similar federal, state, local, or foreign law, common law, or regulation (“ERISA”); or

(12)  the performance of any services or duties by any Insured Person on behalf of or in the name of an entity (other than the Named Insured);

provided that this Exclusion B shall not apply to any Claim arising out of a Wrongful Act committed, attempted, or allegedly committed or attempted by any Insured in the course of providing Professional Services to such entity in the name of or on behalf of the Named Insured;

F.         Capacity as Public Official

based upon, arising from, or in consequence of any Insured acting or allegedly acting in the capacity as a public official or an employee or representative of a governmental body, subdivision, or agency unless such Insured is deemed as a matter of law to be a public official or employee or representative of such entity solely by virtue of rendering Professional Services to it;

G.         Funds Exclusion

based upon, arising from, or in consequence of the actual or alleged conversion, misappropriation, or improper commingling of client funds;

H.         Business Enterprise

based upon, arising from, or in consequence of any Wrongful Act committed, attempted, or allegedly committed or attempted by an Insured in connection with any business entity (other than the Named Insured) if at the time of such Wrongful Act:

(1)   the percentage of ownership of one or more Insureds exceeds fifteen percent (15%) of such business enterprise;

(2)   any Insured is a partner or employee; or

(3)   any Insured controlled, operated, or managed such business enterprise in a non-fiduciary capacity;

J.         ERISA

based upon, arising from, or in consequence of any actual or alleged violation of ERISA; provided that this Exclusion J shall not apply to any Claim arising out of a Wrongful Act committed, attempted, or allegedly committed or attempted by an Insured in the course of providing Professional Services;

K.         Intellectual Property

for any actual or alleged misuse of confidential or proprietary information, copyright, patent, trademark, or trade secret infringement, piracy, theft, or conversion of business ideas, business methods, or trade secrets;

L.         Investment Advice

based upon, arising from, or in consequence of the promotion, sale, management, or solicitation by any Insured of any security, real estate, or other investment;

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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