Many carriers trying to be innovative or distinguish themselves in the Legal Malpractice marketplace try to add certain coverages to the policy hoping to get your business.  While any additional coverage is a good thing, sometimes the advertising and marketing of the additional coverages can cause confusion about the type and extent of the additional coverages offered.  

Some of the additional or ancillary coverages that carriers in the Legal Malpractice marketplace are marketing/providing are: Cyber Coverage, D&O Coverage, Fidelity Coverage and even some BOP coverage or business owners.  Again, the additional coverages are not bad to have but they should not be thought of as complete coverage for that type of exposure.  All of these ancillary coverages are just that – ancillary. Don’t be fooled in thinking that the ancillary coverage is all you need for those exposures.  The ancillary coverage will provide minimal coverage in terms of depth and limits.  

For a more comprehensive coverage with broad depth and adequate limits, you should consider a standalone or separate policy for each of the exposures that exist in your firm.  Although buying separate policies for cyber, business owners, and crime coverage will add to your outlay of cash it should provide adequate protection for you and the firm in the event of a claim or loss.  Notice I did not mention D&O coverage, if you sit on a non profit or for profit board you definitely need to check with that entity and confirm that they do have an inforce policy that protects you in your position as board member.  

Don’t depend on your Legal Malpractice policy to act as a cover all policy.  It’s not!  It’s great to have supplemental and ancillary coverages in the legal malpractice policy but it is a mistake to believe these types of coverage will provide the coverage needed in a claim situation.  Investigate standalone policies.