What limits should I carry for my practice?
Recommended limits vary. In considering limits, ask yourself: “If I make a mistake, how much will the client be damaged?” How much you pay for your premium depends on many different things including your areas of practice and the limits of liability you choose.
The Bar Plan has limits available from $100,000 to $5,000,000, with excess limits available up to $10,000,000. In New Mexico, limits start at $500,000.
Do most policies offer first dollar defense?
Yes, but in many policies you must request this coverage. It is not automatic. The coverage must be endorsed on the policy for an additional premium. The Bar Plan provides first dollar defense.*
Statistics at The Bar Plan show that 40% of all paid claims in 2004 were closed with an expense payment but without an indemnity payment.
Does my previous employer have coverage for the legal services I provided during my employment?
Normally yes, under the "former partner/associate" coverage of the policy. However, your prior acts coverage is solely dependent on your former employer.
You could be exposed to risk if they:
1. Did not continue to carry insurance.
2. Do not carry a policy that provides former partner/associate coverage.
3. Did not continue to stay in business.
4. Merged with a firm that did not pick up the firm's former partners/associate coverage.
5. Did not split in such a manner that there is a successor firm that will be able to pick up the coverage.
What is a "Voluntary Resolution Refund"?
With this coverage if you report a claim and it is resolved within 12 months of the report, The Bar Plan will waive 50% of your deductible to a maximum of $12,500. If the claim is resolved between 12 months and 24 months, 25% of your deductible to a maximum of $6,250 will be waived.
Do all policies provide coverage as an arbitrator or mediator?
Not necessarily. You should review your policy. The Bar Plan does provide this coverage.
Does the policy include: Prior acts of attorneys for professional services before joining the firm?
The Bar Plan provides true "career" coverage to the attorney.* The Bar Plan does not limit coverage to services provided solely on behalf of your present employer as some policies do. Why risk a gap in coverage just because you change firms. Career coverage as offered by The Bar Plan is too important to take for granted when considering other companies' policies.
Does the Policy cover professional services performed solely on behalf of the firm for a client of the firm?
The Bar Plan provides coverage for legal services performed by the insured. The Bar Plan does not limit the services to clients of the firm. Under some policies, you may not be protected if you represent others as an accommodation or on a pro bono basis.
Does the policy cover an attorney acting as a trustee?
Since you do not have to be an attorney to be a trustee, some policies do not provide "trustee" coverage; The Bar Plan does.
Does the policy cover an attorney acting as a title agent?
Some policies exclude this coverage; The Bar Plan provides title agent coverage when the title work is performed out of the insureds law firm for clients of the firm. Prior to 2006, title agent coverage was provided only by endorsement to the policy at no additional premium.
Does the deductible apply to indemnity and defense?
The Bar Plan provides first dollar defense, which means your deductible, applies only if there is an indemnity payment. This is important because most reported claims are paid without an indemnity payment. Other insurance companies may provide this layer of protection but at additional costs to you.
Does the policy exclude coverage if I represent one of my partners in a legal matter?
The Bar Plan provides coverage for a claim presented by an insured against another insured as long as the claim arises out of an attorney/client relationship. Some policies exclude such representation.
Does the policy exclude a defense under the "Intentional Acts" provision for a person accused of a wrongdoing?
The Bar Plan will generally provide a defense to all members of the firm under the "intentional acts" exclusion when the act, error or omission occurs while the wrongdoer is acting in a professional capacity providing legal services unless the claim arises out of a defalcation of money or property. Most policies do not provide a defense to the attorney accused of a wrong doing.
Does the policy limit coverage under the "Innocent Partner" provision?
The Bar Plan does not limit the coverage under the "Innocent Partner" provision of the policy. Some policies state their indemnification provision for the "Innocent Partner(s)" is in excess of the wrongdoer's assets in the firm.
*Subject to Underwriting Guidelines