If you are a lawyer in Florida and about to start off on your own, then we are sure you must be clueless about how to choose company which provides ‘malpractice insurance’. You might choose to depend on your friend’s advice or call up a few companies before finally deciding on an insurance company who will provide you with attorney malpractice insurance cover in Florida. Here are a few things to keep in mind before deciding on an insurance company.
Which types of attorneys need malpractice insurance?
Any private practicing attorney can be sued for malpractice. It is advisable for all practicing lawyers to go in for malpractice insurance as such an allegation can cost the lawyer and the firm thousands of dollars in defense. This could put a significant financial strain. After every precaution is taken, if a lawyer is still sued then malpractice insurance cover can serve as a financial cushioning for the lawyer and law firm.
What all does malpractice insurance cover?
It is not easy to list as insurance policies vary, but most of them will provide cover for loss of earnings, privacy or cyber protection, additional or sub-limited coverage for pre- and post-judgment interest, disciplinary proceedings (bar matters), expenses associated with a subpoena, and outside director coverage. Coverage is also limited to liability, and is for amounts in excess of the deductible that an insured becomes legally bound to pay as damages and claim expenses as a result of a claim.
What does ‘tail’ mean?
Extended Reporting Period (ERP) is also known as ‘tail’ coverage. ERP covers claims which are levied on or after the insured’s retroactive date and before the termination date of the malpractice insurance policy. It is important to look in to ERP options when deciding which insurance policy to purchase as they vary with each insurance company. ERP options will be given in years as well as within unlimited options.
What options should a lawyer look in to?
Each attorney or law firm should look for different options under malpractice insurance cover as each have their own requirements. But broadly they should look in to:
- Prior Acts: This means that it is a date after which if losses occur then they can be covered under the insurance policy. A very important consideration is to maintain continuity of coverage.
- Limit of Liability: This means the maximum amount the insurance company will pay for the coverage.
- Deductible: It is the amount the firm will pay ‘out-of-pocket’ in the event of a loss.
- Claim expenses: Check whether the claim expenses is included under limit of liability or not.
Written by: life jrLife Health | Information, Updated at: 9:39 PM