Lawyers Professional Liability Insurance Attorneys Malpractice Insurance

By accepting this policy you’re representing to us that the statements made in the application for this policy are true and complete. In consideration of this representation and of the premium paid and subject to all the terms and conditions of this policy, we agree with you as follows:

Section A - Insuring Agreement

We’ll pay on your behalf all sums you become legally obligated to pay as damages in excess of the Deductible as a result of claims first made against you and first reported to us in writing during the policy term or any extended reporting period we provide. The damages must arise out of an act, error or omission from your rendering or your failing to render professional services. Damages include claims against you for personal injury from professional services.

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Section B - Defense and Settlement

Our Duty to Defend:
Subject to the Policy Limits we’ll pay claims expenses to defend covered claims including their appeal, even if the allegations are groundless, false or fraudulent.

We may investigate any claim at a time and in a manner we choose. We have the right to withdraw from further investigation or defense and to tender to you any further defense when the policy limit(s) have been exhausted by payment. If that happens, we’ll do the following:

1. Notify you of any outstanding claim(s) so that you can arrange to take over control and claims expenses;

2. Assist in the transfer of control to you for such defense.

Your Consent to Settle:
We won’t settle any claim without your written consent. If we recommended a settlement to you and you refuse consent or choose to contest the claim or continue legal proceedings, then the most we’ll pay is the amount for which the claim could have been settled plus claims expenses incurred up to the date you refused to consent to a settlement we recommended to you.

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Section C - Supplementary Payments

Although not damages, we'll pay, in addition to the Policy Limits:
1. up to $500 per day for loss of earnings for each of you that are required to attend, at our request, a trial, hearing or arbitration proceeding involving a claim. The maximum amount payable by us per claim under this provision shall not exceed $5,000 in the aggregate; and

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Section D - Exclusions

This policy doesn’t apply to:
1. claims based upon or arising out of acts, errors or omissions if, prior to the inception of this policy, you had knowledge of circumstances which could give rise to a claim or grievance made against you;

2. claims based upon or arising out of conversion, misappropriation or improper commingling of client funds;

3. claims based upon or arising out of professional services provided in connection with any offering, purchase, sale, controlled exchange or transaction relating to securities regulated by state or federal securities statutes including the Securities Act of 1933 and the Securities Exchange Act of 1934;

4. claims based upon or arising out of professional services you provide to a trust or estate as an administrator, conservator, executor, guardian, trustee, or in any similar fiduciary capacity if you’re the beneficiary or distributee of the trust or estate;

5. claims based upon or arising out of, in whole or in part, your service or capacity as a broker, dealer or advisor of investments, a broker, agent or advisor of insurance, or as a real estate broker or real estate agent;

6. claims, related claims, related acts or omissions or grievances you reported to a prior insurer;

7. punitive damages, exemplary damages or any award of multiples of compensatory damages;

8. any claim brought by one or more of you covered under this policy against another of you covered under this policy;

9. claims based upon or arising out of, in whole or in part, your service or position as a partner, owner, officer, director, stockholder, employer or employee of any business enterprise, firm or corporation not otherwise covered by this policy;

10. claims based upon or arising out of:

a. dishonest, fraudulent, criminal, malicious or intentionally wrongful acts, but c overage remains applicable for any of you who didn’t personally commit or participate or fail to report any such acts;
b. any obligation for which you may be held liable under workers’ compensation law or any similar law;
c. bodily injury, sickness, disease or death, including any resulting mental anguish or emotional distress; or
d. injury to or destruction of tangible property;

11. liability you assume by contract or agreement unless you would have been liable if the contract or agreement didn’t exist;

12. claims based upon or arising out of your service or capacity as:

a. an officer, director, partner, stockholder or employee of a business enterprise or charitable organization or pension, welfare, profit sharing, mutual or investment fund or trust;
b. a public official or an employee of a governmental body, subdivision or agency; or
c. a fiduciary under the Employee Retirement Income Security Act of 1974 and its amendments or any regulation or order issued pursuant thereto;

13. claims alleging sexual intimacy, sexual molestation, or sexual assault;

14. violations by you of any law or regulation imposing criminal penalties or liability arising out of the violation by others, with your consent, of any law or regulation imposing criminal penalties;

15. claims based upon or arising out of wrongful termination, harassment or discrimination on the basis of race, creed, age, sex, national origin, marital status, physical or mental handicap, religion, or sexual preference;

16. claims based upon or arising out of nuclear reaction, radiation or contamination, regardless of the cause;

17. claims based upon or arising out of, whether suddenly or over a period of time:

a. the actual, alleged or threatened emission, discharge, dispersal, seepage, release or escape of smoke, vapors, soot, fumes, acids, alkalis, or other irritants, contaminants or pollutants; or
b. any injury, damage, payments, costs or expenses incurred as a result of any testing for, monitoring, removal, containment, treatment, detoxification, neutralization or cleanup of smoke, vapors, soot, fumes, acids, alkalis, or other irritants, contaminants or pollutants.

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Section E - The Deductible
Our obligation to pay damages and claims expenses on your behalf applies only to the a mount of damages and claims expenses in excess of the Deductible amount stated in the Declarations. The Policy Limits are provided in excess of the Deductible and the Policy Limits are not reduced by your payment of the Deductible.

The Deductible amount stated in the Declarations is the total amount that you will be required to contribute for all damages and claims expenses arising from each claim made under this policy during the policy term. Although you’re required to pay the Deductible before we’re obligated to make any payment under this policy, we may elect to pay part or all of the Deductible amount to effect settlement or to satisfy our obligation to pay under this policy. If we elect to do this you must reimburse us within 30 days of our request for that portion of the Deductible paid by us.

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Section F - How the Policy Limits Apply

Regardless of the number of:

· you covered by this policy;
· claims made; or
· persons or entities making claims

the policy limits stated in the Declarations apply as follows:

1. EACH CLAIM - The most we’ll pay for damages and claims expenses arising from each claim made under this policy is the amount stated in the Declarations for Each Claim.

2. ANNUAL AGGREGATE - The most we’ll pay for all damages and claims expenses arising from all claims made under this policy is the amount stated in the Declarations as Annual Aggregate.

If related claims are subsequently made against you and reported to us, all such related claims, whenever made, shall be considered a single claim first made and reported to us within the policy term in which the earliest of the related claims was first made and reported to us. If more than one policy issued by us applies to the same claim only one policy limit will apply, and that policy limit will be the largest policy limit available under the policies we issued that apply to the claim.

Claims expenses will be subtracted from the policy limits first as they are incurred for each claim. The remaining amount, if any, is the amount available to pay damages.

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Section G - Who’s Covered
This policy covers the person(s) and/or organization(s) shown as the Named Insured in the Declarations. We also provide coverage for:

1. any of your current partners, shareholders, officers, directors or employees of yours, but only while performing or while they performed professional services on behalf of your firm;

2. any former partner, shareholder, officer, director or employee of yours, but only while performing or while they performed professional services on behalf of your firm;

3. predecessor firms and their officers, shareholders, directors and employees, but only while they were acting in a professional capacity on behalf of the predecessor firm;

4. in the event of your death, incapacity, or bankruptcy; your heirs, executors, administrators, assigns and legal representatives, but only for claims arising out of your acts, errors or omissions prior to your death, incapacity or bankruptcy;

5. lawyers while acting as “of counsel”, but only while performing professional services on behalf of your firm

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Section H - Reporting Endorsement
If you have fully complied with all policy terms and conditions including payment of premiums and Deductibles when due, then when the policy ends the first Named Insured may purchase one of the Reporting Endorsements described in the following paragraphs to extend the time for reporting of claims.

1. A twelve (12) month Reporting Endorsement for 100% of the full annual premium of this policy;

2. A thirty-six (36) month Reporting Endorsement for 200% of the full annual premium of this policy;

3. A sixty (60) month Reporting Endorsement for 250% of the full annual premium of this policy; or,

4. An unlimited time Reporting Endorsement for 300% of the full annual premium of this policy.

To purchase the Reporting Endorsement the first Named Insured must pay the premium within 30 days after the policy ends. Any Reporting Endorsement we issue doesn’t extend the policy term or change the scope of coverage provided or increase the policy limits

If the first Named Insured doesn’t purchase a Reporting Endorsement and if you have fully complied with all policy terms and conditions including payment of premiums and Deductibles when due, a thirty (30) day Basic Extended Reporting Period is automatically provided without an additional charge. The thirty (30) day Basic Extended Reporting Period doesn’t apply if you purchase any subsequent insurance which replaces in whole or in part the coverage provided by this policy. This thirty (30) day Basic Extended Reporting Period doesn’t extend the policy term or change the scope of coverage provided or increase the policy limits.

In the event of your death during the policy term, an unlimited time Reporting Endorsement commencing on the date of your death will be provided at no additional cost. The legal representative of your estate must provide us written proof of your death within 60 days of the date of your death. However, this provision will not apply if your death was the result of suicide.

In the event of your total and permanent disability during the policy term, an unlimited time Reporting Endorsement commencing on the date you become totally and permanently disabled will be provided at no additional cost. You or your legal guardian must provide to us a physician’s written certification of the disability including its commencement date within 60 days of the date you become totally and permanently disabled. The unlimited time Reporting Endorsement is provided unless you resume the practice of law.

In the event of your retirement during the policy term, if you are at least fifty-five (55) years of age and have been continuously insured by Professional Solutions Insurance Company or any of its affiliates for five (5) consecutive years, an unlimited time Reporting Endorsement will be provided at no additional cost. The unlimited time Reporting Endorsement will commence upon the expiration of the current policy period. You must provide written notice to us of such retirement within sixty (60) days of the expiration of the current policy. The unlimited time Reporting Endorsement is provided unless you resume the practice of law.

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Section I - Definitions

Whenever used in this policy:

1. “you,” “your” and “yours” means the person(s) and/or organization(s) shown as the Named Insured in the Declarations, and those we also provide coverage for in Section G of this policy;

2. “we,” “us,” “our” and “ours” means the insurance company listed in the Declarations;

3. “predecessor firms” means any law firm or professional legal corporation:

a. to which you have become the majority successor in interest of its assets and liabilities; and
b.of which you have retained 50% or more of the attorneys;

4. “personal injury” means the following when arising out of professional services:

a. false arrest, inappropriate detention or inappropriate imprisonment,
b. wrongful entry or eviction or other invasion of private property,
c. abuse of process or malicious prosecution, or
d. the publication or utterance of a libel or slander

5. “professional services” means services you perform for clients on behalf of the person(s) and/or organization(s) shown as the Named Insured in the Declarations in your capacity as a lawyer, mediator, arbitrator, title agent, notary public or court appointed trustee for bankruptcy or probate proceedings even if these services could be performed by persons who aren’t lawyers. Except by endorsement to this policy, title agencies or companies on whose behalf you act as title agent or designated issuing attorney are not afforded any coverage under this policy;

6. “claim” or “claims” means a demand or demands you receive for money or services, including suit or institution of arbitration proceedings against you;

7. “damages” means a monetary judgment or settlement. However, damages do not include fines, statutory penalties, or sanctions whether imposed by law or imposed in some other manner. Also, damages do not include the return, reimbursement or restitution of your fees, costs or expenses, nor any form of injunctive or declaratory relief;

8. “claims expenses” means:

a. all expenses incurred with our consent in defending any claim against you covered under this policy;
b. all premiums on bonds to release attachments for an amount not in excess of the applicable policy limit, and all premiums on appeal bonds required in any claim we defend but without any obligation by us to apply for or furnish such bonds;
c. all expenses we incur in defending you;
d. all interest awarded on that part of any judgment we pay. If we make an offer to pay the applicable policy limit, we will not pay any prejudgment interest based on that period of time after the offer;
e. all interest accruing after entry of judgment, but only for that portion of the judgment that doesn’t exceed the applicable policy limit, until we have tendered or paid such part of the judgment that doesn’t exceed our applicable policy limit;

9. “related acts or omissions” means all acts or omissions in the rendering of professional services that are temporally, logically or causally connected by any common fact, circumstance, situation, transaction, event, advice or decision;

10. “related claims” means all claims arising out of a single act or omission or arising out of related acts or omissions in the rendering of professional services.

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Section J - Claims

How to report claims:
1. You must give us written notice of a claim promptly upon your becoming aware that a claim has been made against you, or upon your becoming aware of an act, error or omission which could reasonably result in a claim being made against you. Your written notice of a claim must include details including dates, times, persons involved and witnesses;

2. You must provide us with copies of all demands, complaints or legal documents.

3. During the policy term or any extended reporting period, you may advise us in writing of a potential claim. Then, subject to the other terms and conditions of this policy, we’ll provide coverage for you under this policy for any claim that may subsequently be made against you which arises out of the specific circumstance you reported to us. Your written notice of a potential claim must include details of the specific act, error or omission that could give rise to a claim.

Your duty to cooperate:
1. In order for a claim to be covered by this policy you must fully cooperate with us in our investigation and defense. We may require you to submit to an examination under oath as part of our investigation. We may require that you attend hearings, depositions and trials, and assist us in securing and giving evidence and assist us in our effort to reach a settlement.

2. In order for a claim to be covered by this policy you must not admit liability and you must not take any action with regard to a claim without our prior written consent.

3. You must preserve for us any right you may have of recovery, subrogation, contribution, indemnity or apportionment. We become subrogated to any rights you may have for recovery against any other person or entity for any payment we’ve made under this policy. In no event will we be subrogated in any right of action against another of you covered under this policy. Any amount recovered is to be apportioned in this order:

a. to recoup our expense of subrogation;
b. for any payment we made under this policy for a claim or claims expenses;
c. for any payment you made in addition to our payment, including payment you made to satisfy your Deductible;
d. for the payment made by another insurance company.

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Section K - Additional Conditions

1. Changes in Your firm:
In the event of any material change in your ownership or management including the number of attorneys you employ or in the type of professional services you offer to clients, you must notify us within thirty (30) days.
If the material change is the result of acquisition of you or of the majority of your assets by another entity, or the merger of you into another entity such that you are not the surviving entity, then we shall have the right to deem this policy to have ceased with respect to claims made against you based on any act or omission committed or allegedly committed on or after the date and time of the acquisition or merger. In such event, the policy term shall remain unaltered and coverage will continue, but only with respect to acts or omissions committed prior to the date and time of the acquisition or merger and in accordance with all other terms and conditions of this policy.

2. Change Of Terms:
The terms of this policy won’t be waived or changed except by our issuing an endorsement to form a part of this policy.

3. Territory:
This policy applies anywhere in the world, provided the claim is brought within the United States of America, its territories or possessions, Puerto Rico or Canada;

4. Actions Against Us:
No legal action may be brought against us unless the following conditions are met:

a. you have fully complied with all the terms and conditions of this policy; and,
b. the amount of your obligation to pay has been fully determined by final judgment including appeals.

If these conditions are met, then any person or entity who has secured a judgment against you after trial or has secured a written agreement for settlement with us, is entitled to recover from us to the extent of the insurance afforded under this policy. However, no person, entity or legal representative has any right under this policy to implead us or to join us as a party to any action against you to determine your liability.

5. Fraud And Misrepresentation:
This policy will be void if you mislead us, misrepresent yourself or defraud us or attempt to mislead us, attempt to misrepresent yourself or attempt to defraud us on matters concerning this policy. Your unintentional errors or omissions will not effect your rights under this policy.

6. Other Insurance:
If other insurance is provided to you which would apply to any claim covered by us under this policy, then the insurance provided by this policy is provided as excess of all other insurance whether the other insurance is stated to be primary, pro rata, contributory, excess, contingent or otherwise, unless such other insurance is written specifically as excess insurance over the policy limits provided by this policy.

7. Assignment:
Your assignment of any interest you have in this policy is not binding on us.

8. State Compliance:
If any part of this policy is in conflict with the insurance regulation of a state of proper jurisdiction, that part of this policy automatically changes to appropriately conform.

9. Cancellation And Nonrenewal:
This policy may be canceled by the first Named Insured or by us. If the first Named Insured wants to cancel, the first Named Insured must return the policy to us or advise us in writing of the intent to cancel and the date in the future the first Named Insured would like the cancellation to take effect.

Our mailing of notice of cancellation or nonrenewal to the last known address we have in our records for the first Named Insured will be proof that we notified you. If we cancel for nonpayment of premium, we’ll provide fifteen (15) days notice before your coverage ends. If we cancel for any other reason we’ll provide sixty (60) days notice before your coverage ends.

If we initiate cancellation we’ll return any unearned premium on a pro rata basis. If the first Named Insured initiates cancellation we’ll return any unearned premium on less than a pro rata basis. However, the cancellation of this policy will be effective whether or not the first Named Insured received any return of premium.

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