Professionals, including attorneys, insurance agents, and brokers need to protect against potential lawsuits alleging malpractice or errors and omissions in the course of providing one’s services. Without this must-have coverage, the success of what one has worked so hard to build can be upended. Getting the right type of coverage designed specifically for each profession is what RPS Plus offers. Each of our Errors and Omissions (E&O) programs is aligned to address the exposures of the profession and the industry it serves with coverage that performs.
Lawyers Professional Liability Insurance
Attorneys face a number of E&O claims – from administrative errors, to allegations of completely and improperly abandoning a representation, or entirely failing to address the client's needs in any way. In addition, lawyers increasingly face lawsuits in which the primary or sole allegation is one of breach of fiduciary duty, often due to a conflict of interest, and frequently based in duties arising through implication. Recent years have also seen an increase in claims related to representation in the settlement context, claims brought in response to fee suits, and claims brought on by non-clients. The American Bar Association (ABA) estimates that attorneys will have at least three legal malpractice claims brought against them in the course of their careers.
Lawyers Professional Liability (LPL) insurance is designed to provide coverage for claims that arise from "wrongful acts" committed in the rendering of legal services in the lawyer’s capacity and generally provide both indemnification coverage and claims expense coverage. In general, covered acts usually include those committed in a variety of ancillary services regularly provided by lawyers as a natural offshoot of their regular practices, such as:
- services as a notary public,
- services as a title agent and or title agency,
- acting as a trustee or executor of an estate in connection with representation of a client, and
- acting as an officer, director, or member of a legal professional association.
Broader coverage can often be added through amendment of various endorsements, depending upon the lawyer's circumstances.
The LPL program under RPS Plus offers a number of key features, including coverage for defense expenses in addition to the policy limit; first-dollar defense option; automatic coverage for independent contractors; unlimited ERP option available; relaxed Hammer Clause – insurer pays 50%; and breach mitigation expense, ransomware attack and wire fraud coverage, among others.
Insurance Agents E&O Coverage
The typical insurance agency professional liability claims involve: failure to procure coverage; failure to adequately identify exposures; failure to recommend coverage; failure to explain policy provisions and disclose what the policy does and doesn’t cover; and failure to provide timely notice of a claim to the carrier. Claims alleging failure to procure coverage increase right after a natural disaster, such as in the case of a hurricane when insureds find they lack flood and/or windstorm insurance; or after a wildfire where many insureds find they underinsured to rebuild their homes and face significant out-of-pocket expenses. This is why strong internal procedures and documentation are so critical. Having the right E&O policy in place is also crucial and, as you do with your professional clients, be sure your own policy is ready to respond.
RPS Plus’s product for insurance agents and brokers covers mid-size to larger insurance agencies, wholesalers and managing general agents (MGA), and provides several key coverage features. These include an automatic 60-day ERP; optional ERP up to 6 years; first-dollar deductible included; loss of earnings – $500 per day with a $50,000 aggregate; and a broad definition of “professional services”; among others.
We invite you to learn more about RPS Plus and both our Lawyers Professional Liability and Insurance Agents E&O programs. Just give us a call.