When searching for insurance to cover your professional liability for attorneys, you may hear the term “claims-made.” It’s important to understand what this coverage means and what happens if you cancel or change your policy.
With a claims-made policy, your coverage extends only to claims that occurred, were made, and reported during the time of your policy. All three conditions must be met. It may be wise to purchase a retroactive effective date, to cover claims that you may not be aware of when purchasing your plan. If you are changing plans, check the coverage of your new plan to make sure you will be covered for past mistakes.
When you are retiring or not providing professional services any longer, you can purchase extended coverage to provide peace of mind if someone decides to sue you for your past advice. This extended coverage provides insurance for claims that occurred while the policy was in force, but not reported until after the policy expired. It protects your retirement.
Professional liability for attorneys is a specialized field that deserves an insurance company that understands your unique risks. Talk to your insurance specialist at least annually to review your coverage. Don’t leave yourself open to liability claims by not having insurance. Make sure that you understand the exclusions and endorsements that are available to give you complete coverage.