Munich Re Specialty Insurance has launched a lawyers professional liability (LPL) insurance product, an errors and omissions policy specially designed for mid-size law firms.
The LPL policy provides up to $5 million in primary or excess liability coverage for errors or omissions that cause financial harm to another person or entity, including misrepresentation, violation of good faith and fair dealing, and inaccurate advice, subject to the actual terms of the policy. The policy includes payment for damages for covered claims as well as the cost to defend against such claims.
Policy highlights include:
- Broad definition of insured including independent contractor and predecessor firm
- Broad definition of professional services
- Innocent insured coverage for intentional acts
- Personal injury coverage
- Non-practicing Extended Reporting Period
LPL claims are managed by a dedicated claims team that understands the complexities and nuances that accompany these types of lawsuits.
According to Marcia Blanco, head of Professional Liability Underwriting, Munich Re Specialty Insurance’s traditional policies do not adequately cover firms against E&O claims. Law firms can face significant liability when there is a conflict of interest, a deadline that was missed or a poorly drafted engagement letter.
“Many firms may self-insure against a professional malpractice lawsuit, but the rising costs of defending such claims and the increasingly litigious nature of clients, means that this practice could be financially devastating to a mid-size firm,” Blanco said. “Multimillion-dollar lawsuits are not uncommon and defense costs continue to rise making this a potentially costly lawsuit for any size law firm to defend against.”
Munich Re Specialty Insurance is a description for the insurance business operations of affiliated companies in the Munich Re Group that offer and deliver specialty property and casualty insurance products and services in North America.
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