Filing a lawyers liability insurance claim may not mean the attorney will be found negligent. But even when claims are abandoned or dismissed, defending the action can be time consuming and expensive. When a malpractice claim occurs, it can be important to notify the insurance carrier as soon as possible.
What Is a Claim?
A lawyers liability insurance policy may include a broad definition regarding the types of notifications that constitute a claim. If the insurer isn’t notified according to the terms of the policy, the claim may not be covered. Claims may include:
- Filed Lawsuit
- Written or oral communication demanding that the insured lawyer pay damages for professional services rendered
- Any instance when the insured should reasonably know that an error or omission occurred that could result in a claim.
When to File a Claim
To ensure coverage for the claim, attorneys may be required to report claims to an insurance carrier immediately after being notified that a claim is possible or in process. With early notification, an insurance carrier may be able to work with the attorney and dissatisfied client to resolve the issue when there may still be options apart from a time-consuming, expensive malpractice lawsuit. Understanding when notification is required, and when it can be helpful for solving the underlying issue, can be an important part of getting the most of the lawyers liability insurance coverage.