This form should be useful
for documenting the differences among companies that offer lawyers professional
liability policies. It can be used to
record special endorsement limits, exclusions, other improvements, or any
restrictions that apply.
Using this chart is not a
statement of coverage it is a tool to help you and your client understand key
differences. It is important to note that it will not highlight every
difference that could impact coverage.
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COVERAGE
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ISO
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COMPANY A
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COMPANY B
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COMPANY C
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INSURING AGREEMENT
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Legally obligated due to wrongful act
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Yes
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Claims-made basis
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Yes
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Defense inside policy
limits
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Yes
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Insurance company duty
to defend ends when limits exhausted
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Yes
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Right to consent to
settlement
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Only named insured
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All claims from same
wrongful act are a single claim
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Yes
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EXCLUSIONS
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COMPANY A
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COMPANY B
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COMPANY C
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*Criminal, fraudulent, malicious, intentional or dishonest acts
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Yes
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Bodily injury and property damage
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Yes
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*Improper use of funds
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Yes
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Professional services
not on behalf of named insured or predecessor
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Yes
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Professionals services provided by
businesses owned by an insured or insured’s spouse that are not the named
insured
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Yes
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Insured suing another insured
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Yes
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ERISA
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Yes
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Violation of securities
laws
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Yes
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Claims related to
litigation that was pending prior to the date on the declaration
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Yes
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Contractual liability
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Yes
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Investment Advice
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Yes
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Discrimination
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Yes
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Employment-related practices
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Yes
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Deemed a public official
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Yes
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Personal and
advertising injury
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Yes
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Claim reported on a
prior policy
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Yes
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Insolvency of an insurance carrier
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Yes
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Insolvency of an financial institution
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Yes
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Pollution
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Yes
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Fungi or bacteria
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Yes
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Abuse and molestation
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Yes
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SUPPLEMENTARY PAYMENTS (Outside Of Limits Of Insurance)
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COMPANY A
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COMPANY B
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COMPANY C
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Prejudgment interest
prior to offer
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Yes
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Post judgment interest
on total prior to payment of covered part
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Yes
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COVERAGE EXTENSIONS
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Limited spousal
liability
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Yes
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Incapacitated insured’s
estate as insured
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Yes
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Protection of innocent
insured for * exclusions above
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Yes
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WHO IS AN INSURED
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COMPANY A
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COMPANY B
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COMPANY C
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Named insured is not
stated to be an insured
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Yes
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Officers, directors,
shareholder or members of the named insured
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Yes
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Past or present
employees of named insured
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Yes
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Independent lawyer when
retained as counsel
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Yes
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Lawyer who retired from
named insured
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Yes
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Incapacitated insureds
estates etc.
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Yes
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LIMITS OF INSURANCE
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COMPANY A
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COMPANY B
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COMPANY C
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Each Claim Limit
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Aggregate Limits
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DEDUCTIBLE
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COMPANY A
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COMPANY B
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COMPANY C
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CONDITIONS (Not complete listing)
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COMPANY A
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COMPANY B
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COMPANY C
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If refuse to consent to
settlement – payment by carrier is restricted to the amount of refused
settlement amount.
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Yes
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Ninety day notice of
new acquisitions and new lawyers
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Yes
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No premium refund when
named insured acquired mid-year
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Yes
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Cancellation
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10 days-nonpayment
60 days-all other
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Nonrenew
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30 days
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Conditions that apply
when the insured selects is own counsel
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Yes
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EXTENDED REPORTING PERIOD
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COMPANY A
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COMPANY B
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COMPANY C
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Basic – 60 days automatic
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Yes
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Additional – 3 year
after expiration of basic
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Yes
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DEFINITIONS
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Yes
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COMPANY A
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COMPANY B
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COMPANY C
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Coverage Territory – US, territories and possessions, Puerto
Rico, Canada
Rest of the world if
suit brought in the basic coverage territory.
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Yes
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Defense expenses – all of the following are defense expenses
- Attorney
and paralegal fees
- Insured
retained counsel fees
- Hearing
expenses
- Expert
witness fees
- Fees
taxed by court against insured
This apply only if
either or both of the following apply:
If the persons
providing the services are not insurance company employees
The charges are
allocated to a specific claims
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Yes
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Employee – includes leased and temporary but not independent
contractors
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Yes
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Professional Services – part of the named insured’s practice of
law. The service must require a license and be a fiduciary capacity such as
any of the following:
- attorney
- arbitrator
- mediator
- title agent
- notary
public
- administrator
- conservator
- receive
- executor
- guardian
- trustee
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Yes
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Property Damage – the standard CGL property damage definition
except damage to electronic damage is added to the definition. Therefore,
because of this addition to the definition, electronic data is excluded from
coverage.
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Wrongful Act – has five parts:
- Committed
by an insured
- An act,
error, or omission must have occurred.
- The act,
error, or omission must arise from professional services.
- The
professional services could have been rendered or should have been
rendered but were not.
- Damages
must result. They can be alleged or actual.
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Yes
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ENDORSEMENTS
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COMPANY A
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COMPANY B
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COMPANY C
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