language normally to the effect set out below:
Subject to the limit of liability exclusions
and conditions and other terms of the policy,
the company agrees to pay on behalf of the
insured all sums that the insured becomes
legally obligated to pay arising from or in
connection with a claim first made against
the insured and first reported during the
policy period.
The insurance policy, though, will have
limited language thereafter that the act, error,
or omission must be in the performance of
professional services and at the effective date
of the policy, no insured knew or should
have reasonably known or foreseen that the
act, error, or omission might be the basis of
a claim.
Disciplinary Complaint Coverage
Quality professional liability policies do
provide for supplemental coverages for
disciplinary complaints brought against the
attorney. It is vital that attorneys review
“
Generally, the professional liability policy
contains a promise to the attorney that an outside
counsel will be appointed to provide defense
after consultation with the insured attorney.
”
their policy to determine whether they
have secured supplementary disciplinary
coverage. The policies typically provide
that if there is a disciplinary proceeding
brought against the attorney the policies
provide for up to $5,000 for attorney’s
fees for hiring of an attorney to represent
the lawyer in the disciplinary proceeding.
Noteworthy is that the professional liabilities
typically do recognize the possibility of
covered and uncovered claims and provide
for an allocation of damages and claim
expenses based upon what is covered and
what is uncovered. So, it is a mixed bag if
the complaint against the attorney regarding
reimbursement for fees and malpractice.
Defense and Claims Provisions
Definitions
Generally, the professional liability policy
contains a promise to the attorney that
an outside counsel will be appointed
to provide defense after consultation
with the insured attorney. Therefore, the
insured will have some say in who to hire.
The policy will have numerous definitions.
“Claim” is defined to regard the performance
of attorney services. There is no coverage
for employment discriminations, sexual
harassment, or bodily injury to another
person.
ALPS NORTH DAKOTA
YOUR STATE BAR ASSOCIATION OF
NORTH DAKOTA-ENDORSED MALPRACTICE CARRIER
• More North Dakota lawyers trust ALPS than any other carrier
• North Dakota lawyer input on policy features and risk management
• From Williston to Fargo and all points in between, we have North Dakota lawyers covered
(800) 367-2577 | www.alpsnet.com
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THE GAVEL