Attorneys face allegations of professional liability on a recurring basis all throughout the course of their careers. Some might say it’s the price of providing legal services. Claims against attorneys have seen a substantial increase over the past several years and many lawyers joining a new firm should realize the precariousness of their situation.
Nowadays lawyers may wind up moving from firm to firm fairly regularly and it’s their duty to give notice to any firm hiring them of any alleged malpractice suits that involved them. Having an Axis Policy that addresses situations pertaining to professional liability should remain as uninterrupted coverage throughout each and every year that they practice law.
An obligation to disclose any open claims
An insurer providing coverage when an accusation results in a claim needs to be given immediate notice. A lawyer has an obligation to give proper notice to all concerned parties in any event. The insurer working for the new firm might willingly cover a claim for malpractice committed at a prior firm if the malpractice also involves their client as well. This could also be true if their client’s policy specifically covers lawyers for any cases they were working on at their previous firm.
The insurer at the current firm might bar coverage if a potential problem existed and there was a failure to disclose that problem. This protects any parties that were exempt from any legal discourse for cases that they were not involved with. The insurer for his or her new firm can exercise their right to exclude work performed by an attorney resulting from services rendered at their previous firm.
Let’s say, as an example that a former partner was served with a claim letter involving work performed while with that firm. This attorney chose to delay providing that information to the firm he currently works at and they subsequently found themselves embroiled in the lawsuit. Their policy may be voided and they would then be at risk of paying off the settlement figure.
Fortunately, lawyers and firms can minimize these risks. Speak to an agent about any questions pertaining to liability claims, and purchase an Axis Policy for lawyers’ professional liability coverage that will provide you with the proper protection.