“Professional Services” will be defined in the
policy to mean errors and omissions relating
to an attorney-client relationship. Typically,
the policy will include in the definition
additional events such as mediator, arbitrator,
conservator, administrator, or guardian,
which are typically services lawyers perform.
Duty to Report
There will be a promise found in the policy
that the attorney is to provide immediate
notice when she becomes aware of an act,
error, or omission that could reasonably be
expected to be the basis of a claim. North
Dakota law enforces such a duty to provide
notice. Finstad v. Thiger Tractor, Inc., 301
N.W.2d 392, 395 (N.D. 1981); Kippen v.
Farm Bureau Mutual Insurance Company,
421 N.W.2d 483, 486 (N.D. 1988). To
paraphrase Donald J. Trump, Sr., “This is
HUUUGE!” Report immediately.
Exclusions
be no coverage for a claim made against
the insured after the policy period, or any
applicable extending policy period. All policy
coverage ceases with the termination of the
policy unless the undersigned exercises tail
coverage options.
There will generally be an exclusion for any
conversion, misappropriation, improper
comingling, or negligent supervision of
client or trust account funds or property held
or controlled by the attorney. It cannot be
overlooked that there is typically no coverage
even available for negligent supervision
of such funds. The policies will provide
something to the effect set out below as an
exclusion:
Any conversion, misappropriation, improper
commingling or negligent supervision by
any person of client or trust account funds or
property, or funds or property of any other
person held or controlled by an Insured
in any capacity or under any authority,
including any loss or reduction in the value
of such funds or property;
Obviously, the carrier’s goal is to insure
events involving the practice of law and not
handling client funds. There will also be
exclusion for any dispute regarding fees or
costs, or any claim that seeks reimburseme