FAQs

1. Why do I need Lawyers' Professional Liability insurance?
2. I already have liability insurance. Why consider the Pennsylvania Bar Association’s plan?
3. What is the difference between defense inside and outside?
   
4. What are the different deductible options that you offer?
5. What is a claim?
   
6. What is a potential claim?
   
7. What is an Extended Reporting Period (ERP) or "Tail" coverage?
8. How can I switch if I am already covered?

Why do I need Lawyers' Professional Liability insurance?
Under the new PA Rule 1.4 (c), firms that do not carry sufficient professional liability insurance will be required to notify clients in writing. Specifically the rule requires lawyers to inform clients if they do not have malpractice insurance of at least $100,000 per occurrence and $300,000 in the aggregate per year, and if at any time malpractice insurance drops below either of these amounts.

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I already have liability insurance. Why consider the Pennsylvania Bar Association’s plan?
If you already have coverage, it’s advisable that you look at two key areas: continous coverage, under which you’re covered even if you fail to report a potential claim against you; and the consent-to-settle clause, which compels you to settle even if you wish to make a defense on principle. The Bar Association’s plan offers continuous coverage and does not include a consent-to-settle provision — two benefits that set it apart from other plans.

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What is the difference between defense inside and outside?
Defense Costs Inside the Limits of Liability means that both the loss amount and claim expenses are deducted from the available limit of liability, and reduce the amount of your available limits to pay the actual claim. Defense Costs Outside the Limits of Liability means that only the damages/settlement amount is deducted from the available limit of liability, and that defense costs are in addition to the limits of liability.

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What are the different deductible options that you offer?

• Loss and/or Defense Per Claim: The deductible applies for each and every claim, to loss and defense payments.
• Loss and/or Defense Annual Aggregate: The deductible applies for each and every claim, to loss and defense payments, but is limited to the aggregate for the policy period.
• Loss Only Per Claim: The deductible applies for each and every claim, but is limited to loss payments only.
• Deductible options are subject to underwriting.

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What is a claim?
A claim is a demand made upon any insured for loss, as defined in each of the coverage units including, but not limited to, service of suit or institution of arbitration proceedings or administrative proceedings against any insured.

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What is a potential claim?
A potential claim is any act, error, omission, circumstance, or personal injury that might reasonably be expected to give rise to a claim against any insured under the policy; or any breach of duty to a client or third party that has not resulted in a claim against an insured.

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What is an Extended Reporting Period (ERP) or "Tail" coverage?
Extended Reporting Periods are used to provide coverage for claims that may be reported after the end of a claims-made policy period. The option to extend the reporting period does not extend the policy period. The ERP cannot be renewed or extended.

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How can I switch if I am already covered?
Please fill out the short form to the right and we will contact you 60 days prior to your policy expiration date.

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