Legal Malpractice Insurance Center

Frequently Asked Questions

Which states do you operate in?

We are licensed and operate in the following states: Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Vermont, Washington, Wisconsin, Wyoming.

Why are there two numbers in my policy limit?

Policy limits are usually composed of two numbers, such as $1,000,000/$2,000,000. In this example, the policy would have a limit of $1 million per claim and an annual aggregate limit of $2 million. The annual aggregate limit is the most the insurance carrier would be liable for under a scenario where two or more claims are reported in a single policy year.

What is the retroactive date?

Legal malpractice insurance is written on a claims made basis. This means that the policy under which the claim is reported to the insurance company is responsible the claim, not the policy in effect when the act, error or omission was committed. However, the act, error or omission must have been committed after the retroactive date, which is usually the inception date of the first policy. The retroactive date therefore determines the beginning of coverage and should not be changed at policy renewal.

What happens if I stop working?

It depends if you have your own policy which you will not be renewing or if you're covered under a policy purchased by the firm you work for or your employer.

To the extent that you have your own policy which you will not be renewing or that you will be cancelling, you would need to purchase an extended reporting endorsement, also called tail coverage, in order to have coverage for claims which might be reported after you stop working. The tail coverage is available from your current insurance company.

If you're currently covered under a firm's or employer's policy, you should carefully read the policy to make sure that it covers both current and former partners and employees. If so, you may not need specific tail coverage to the extent that your prior firm or employer keeps the coverage in place after you stop working for them. Please note that you should carefully review your situation and make sure that you will continue to be covered for your prior acts for a sufficient number of years after you leave your current firm or employer.

What's the difference between an admitted and non-admitted insurance company?

Admitted insurance companies are regulated by the department of insurance in each state in which they operate. The various insurance departments regularly conduct financial and market conduct examinations to review the financial health and the practices of admitted carriers. Some states actively regulate the rates that can be charged and the policy forms that are used. Admitted insurance companies also participate in the state guaranty associations which pay claims on behalf of insolvent insurers.

Non-admitted, also known as surplus lines, insurance companies are not regulated by the states in which they operate. These types of insurers take on more risk and offer insurance to those who cannot find coverage in the admitted market. Non-admitted carriers do not participate in the state guaranty associations.

Can I pay my premium in installments?

The carriers that work on a direct billing basis will usually offer installments for the larger premiums. The carriers that work on an agency billing basis usually require full premium payment. In this case, we can provide installments by financing your premium through a third party finance company. The process involves a down payment of 25% to 30% and the payment of monthly installments to the finance company.