Is there a minimum limit that you need to carry on your legal malpractice policy as an attorney in Pennsylvania?
There is no limit that is required. As a matter of fact, you don’t have to carry legal malpractice insurance at all. However, keep in mind, if you do not carry at least $100,000 per claim, and $300,000 aggregate limit, you do have to disclose that fact to your clients that you do not carry the minimum of 100/300. On a side note, 100/300 limits is really not sufficient either.
It is recommended that if you are going to carry legal malpractice insurance, you need at least half a million dollars per claim. Don’t get caught uninsured or underinsured.
Contact us at INtegrity First Corporation and we will be glad to answer any questions regarding legal malpractice insurance.
How often should you shop your legal malpractice insurance? It doesn’t hurt to actually look at other coverages every year, but it doesn’t pay to actually switch every year. That’s a dangerous practice to change your legal malpractice policy carrier year after year after year. You do not want to do that because of the type of policy it is. It is a claims made policy and switching year after year after year is not a good practice.
Also, when you’re shopping legal malpractice insurance, in order to get a solid quote from a competing carrier, you need to complete that carrier’s application. So you have to ask yourself, if you’re looking to save $100 but they’re asking you to complete one of their applications, how long is it going to take you to complete that application? An hour, two hours, three hours? What do you charge an hour? $100 an hour, $200 an hour, $300 an hour?
It actually could end up where it’s costing you money to switch carriers to save premium dollars. Kind of a crazy thing!
We at Integrity First Corporation are celebrating our 14th year in business this month and we want to thank all of our clients who made it possible because without you, we wouldn’t have made it one year, let alone 14 years. So thank you very much.
With any anniversary, I think you start to reflect as to what has changed over the course of the years (other than the color of my hair). I actually had a client give me a call this past week. He asked me if I thought the legal malpractice industry was a lot more competitive than what it has been in the past because he’s been receiving several emails, phone calls, and faxes every day from people that he’s never heard of offering legal malpractice insurance. I told him no, as far as I was concerned, it was not more competitive. It’s actually, from a coverage standpoint, probably less competitive than what it has been in the years past because there are less carriers that are actually offering the coverage.
As I started thinking more and more, I thought the reason why it seems that it’s more competitive is because there are more agencies and more agents that have gotten appointments or assignments to be able to offer quotes and coverage terms and we as an industry have actually made the legal malpractice product more of a commodity at times than that of a professional product. Agencies now send out what’s referred to as indication sheets and emails that say “ If you answer these three or four questions, we’ll throw a price at you.” and that’s what it’s become. So, it does seem that it’s gotten more competitive because of that practice. And, from my perspective, I think that’s sad.
As an agency, we pride ourselves in trying to establish a long and solid relationship with our clients, getting to know them, and making sure that they’re getting the coverage that they need. We keep up to date and up to speed with the changes in the policy and the changes in the industry. We’re not just going to throw out four questions at you and say, “Hey, answer these, here’s your quote, don’t really care what you do, not really sure if the policy is going to cover everything that you need. But we’re gonna give you a price that’s less than what you’re paying.” We’re not going to do that.
We’re going to continue to do what we have been doing the last 14 years, for the next 14 years. So, again, I want to thank all of you for giving us the opportunity to be of service to you, and we do look forward to another 14 years of being in business. Thank you very much.
What is privacy regulatory claims coverage in a cyber liability policy?
Wow. That’s a mouthful.
The regulatory coverage in a cyber liability policy actually pays for and protects you against the fines and sanctions that may be levied against you from state, local and federal governments for not properly ensuring the data that you’re responsible for.
Don’t get caught, make sure this coverage is in your cyber liability policy.
Does your business include providing notary services for
If it does, you may have a potential coverage gap in your
errors and omissions insurance policy.
In the times that we live in today with the COVID virus in
the state mandated social distancing rules and regulations, the notary industry
has come up with what they call RON services, remote online notary services.
This basically allows the notary to perform notary reacts without the signer of
the documents physically appearing in front of the notary. And while this may
be a great thing to do now, during these times, it does pose insurance concerns
and coverage issues.
Most errors and omissions policies which cover notary acts
contain an exclusion or exclusionary wording that prohibits a notary act
without the signer of the documents physically appearing in front of the
Well, if you are notarizing a document online, obviously the
signer of the document is not physically in front of you. What do you do?
I suggest that you call your insurance broker that sold you
your errors and omissions policy and have him or her confirm with the insurance
carrier, that the RON services will in fact be covered under your policy.
We at Integrity First Corporation have called all the carriers that we deal with for the errors and omissions coverage and they all have answered positively with regards to the remote online notary services. They have confirmed that the policies will respond to the RON services provided that those services have been done in accordance with the state approved guidelines and regulations.
So again, you need to do the same. Call your broker and
confirm that coverage does exist for these types of services in your policy.
Hey, in these crazy times, as employers, we all have employees working from home…and although I’m not going to be able to give you advice on where to go for a good haircut, I am in a position to be able to give you three pretty good tips on how to keep your business information safe when your employees are working from home.
Do They Have a SECURE Internet Connection? TIP 1
First thing you need to do is make sure that your employees
actually are working from a secure internet connection from their house. They
really should be working with a WPA2 connection. And I think most people have
that nowadays at their houses.
But there are some older systems that are still out there being used and they’re using a WEP key, which is not very secure. So, you want to make sure that that they’re not using that.
Do They LOCK Their Computer When They Leave It Unattended? TIP 2
Second thing – Make sure that when your employees are
working from home, that they still actually lock their computer when they are
done for the day (or even leave the room)…so your business data is safe. The
mere fact that they’re working from home and not in your office doesn’t mean
that the information that they’re working with can’t be stolen or mistakenly
sent to somebody.
I mean, a lot of us have little kids running around and
who’s to say you get up and leave, little Johnny comes and starts tapping on
the computer keys, and says “Can I get on Facebook?”
Next thing you know all of your business information is sent to little Johnny’s 150 closest friends. You don’t want to get into that situation.
Do They Have a Separate Work Computer? TIP 3
Lastly, make sure that you give your employees their own computer to work from home. Don’t expect or ask your employees to use their personal computer to do your work. You want to keep church and state separated, so to speak. When they’re working on your business, you want to make sure that they’re using your computer. You don’t want them paying their personal bills on your computer or your business bills on their personal computer…it just doesn’t mix. Not a good thing. We at INF hope these tips help you out.
A question that frequently arises in the world of professional liability insurance is “what limits of liability should a lawyer or law firm carry?”
To me, there is a simple answer to this question.
There are two parts to a set of professional liability insurance limits. The first part is the “per claim” limit of liability. This is the most that an insurance carrier will pay for both the cost to defend any one claim and any subsequent “loss” or “damages” sustained from said claim. It stands to reason that the per claim limit of liability should be enough to cover both defense costs and a payout from a claim stemming from your highest valued case.
The second part of a set of professional liability insurance limits is the “aggregate” limit of liability. This is the maximum amount of coverage for the entire policy year. As the per claim limit should be selected to cover the worst of potential claims, your aggregate limit should be enough to cover your most expensive two or three claims.
If you find yourself thinking that your current coverage may not be suited to cover your biggest exposure, consult your broker on what the procedure and cost will be to obtain the limits you need. You may be pleasantly surprised at how little the cost is to improve your coverage.
Know the rules regarding gifts. Generally, a lawyer may receive modest, unsolicited gifts from clients(1). However, a lawyer should not solicit substantial gifts from a client, including testamentary gifts, unless the client is a close relative (2).
1 See MODEL RULES OF PROF’L CONDUCT R.1.8(c) (1983) (amended 2013). 2 Id.