Global reinsurer, Munich Re has announced the introduction of Lawyers Professional Liability (LPL) insurance, 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.
This includes 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.
One of the policy highlights includes a broad definition of insured including independent contractor and predecessor firm, as well as a broad definition of professional services.
Other highlights are that the policyholder will be have innocent insured coverage for intentional acts, along with personal injury coverage.
LPL claims are managed by a dedicated claims team that understands the complexities and nuances that accompany these types of lawsuits.
Marcia Blanco, Munich Re’s Head of Professional Liability Underwriting, commented: “Law firms have specialised risk management needs that are not comprehensively addressed by standard property and casualty insurance policies.
“Our Lawyers Professional Liability coverage fills that insurance protection gap by offering law firms a tailored policy to meet their needs with the flexibility to reflect current trends in the market supported by expert claims service.
“Law firms may 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.
“Multimillion-dollar lawsuits are not uncommon and defence costs continue to rise making this a potentially costly lawsuit for any size law firm to defend against.”
Source: Reinsurance News
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