LAWYERS PROFESSIONAL LIABILITY EXPOSURE ANALYSIS CHECKLIST

(March 2023)

This checklist is designed to assist with professional coverage analysis. This is only a starting point and additional risk specific questions may arise as during the effort to discover exposures. This analysis should be combined with exposure analysis checklists for other coverages to develop a complete picture of the insured’s operations.

This checklist is designed to supplement the ACORD application.

A list of endorsements may be helpful as you discuss exposures with your client.

Lawyers Professional Liability Available Endorsements And Their Uses

Lawyers Professional Liability Endorsements Checklist

GENERAL INFORMATION

Legal business name(s):

____________________________________________________________________________________

Mailing address:

____________________________________________________________________________________

Email: _______________________________________________________________________________

Website: _____________________________________________________________________________

Type of entity:

___ Individual	___ Corporation	___ Sub-S Corp.
___ Partnership	___ Joint Venture
___ Not-for-profit	___ Limited Liability Company

SIC Code(s): _________________________________________________________________________

NAICS Code(s):_______________________________________________________________________

Federal ID Number: ____________________________

When did the applicant start business operations? ___________________________________________

When did the present management assume control? _________________________________________

How many years’ experience does the owner have in this type of business? _______________________

How many years’ experience does the manager have in this type of business? _____________________

Has the applicant ever been involved in a bankruptcy procedure? ___ Yes ___ No

If yes, explain including the type of bankruptcy, the filing date, and the resolution.

____________________________________________________________________________________

Names of subsidiary companies or joint ventures that are not part of this application:

____________________________________________________________________________________

Important People	Name	Phone Number
Owner/Principal	____________________________	______________
Other Decision Makers	____________________________	______________
Plant and Grounds	____________________________	______________
Financial	____________________________	______________
Legal	____________________________	______________
Claims	____________________________	______________

The applicant’s primary operations are:

____________________________________________________________________________________

The applicant’s secondary and/or incidental operations are:

____________________________________________________________________________________

The applicant used to be involved in the following operations, but they have been discontinued:

____________________________________________________________________________________

Does the applicant specialize in any specific type of law, such as probate, divorce, trial, etc.? ___ Yes ___ No

If yes, provide details (including percentage devoted to each area):

Area of Practice	%	Area of Practice	%



Total Percentage (information should equal 100%)

Have any lawyers joined the applicant in the past three (3) years? ___ Yes ___ No

If yes, provide their previous affiliations - firm name, location and dates of service.

__________________________________________________________________________________________

Have any lawyers left the applicant in the past three (3) years? ___ Yes ___ No

If yes, provide their name(s) and dates(s) of termination.

__________________________________________________________________________________________

For each category that follows, indicate the number of staff members employed by the firm.

Attorneys		Title Agents
Paralegals		Insurance Agent/Broker
Investigators		Broker Dealers
Abstractors		Registered Representatives
Accountants		Clerical
Real Estate Agent/Broker		Others (describe)

What is the total number of continuing education hours completed by all attorneys at the applicant for the past 12 months?

__________________________________________________________________________________________

Does any attorney in the applicant act as a(n):

Public Defender? ___ Yes ___ No

Prosecuting Attorney? ___ Yes ___ No

Arbitrator or Mediator? ___ Yes ___ No

In-house attorney of any corporation or government agency? ___ Yes ___ No

Independent contractor or "contract attorney" for other parties? ___ Yes ___ No

If yes to any of the above, provide details.

__________________________________________________________________________________________

When does the applicant's fiscal year end? _____ Month ______ Day

What is the applicant's gross income for the applicable fiscal year? $___________

What is the estimated gross income for the current fiscal year? $___________

Has an attorney of the applicant represented a financial institution? ___ Yes ___ No

If yes, provide the following information:

Name of attorney: ______________________________________________________________________

Name of financial institution: ______________________________________________________________

Is the financial institution a current client of the applicant? ___ Yes ___ No

Has the financial institution ever been declared insolvent? ___ Yes ___ No

Does any attorney of the applicant serve as an outside director or officer? ___ Yes ___ No

Does any attorney of the applicant have any ownership interest in a client’s business? ___ Yes ___ No

If yes to either of the above questions, provide details._______________________________________________

__________________________________________________________________________________________

In what areas of law does the applicant attribute the largest percentage of gross income? (i.e., Real Estate, Corporate, Municipal, etc.)

________________________________________________________________________________

__________________________________________________________________________________________

Does the applicant expect any major changes in the percentages identified in the above question? ___ Yes ___ No

If yes, what area of law does the applicant expect to increase or decrease? _______________________________

List all clients (by industry) that represent 25% or more of the applicant's or individual attorney's gross income.

__________________________________________________________________________________________

Describe the type of service(s) rendered to client(s) listed in the above questions.

__________________________________________________________________________________________

Does the applicant have a planned system for control of deadlines and other critical dates? ___ Yes ___ No

Does the applicant's system include all dates (statutory or procedural) or deadlines applicable to the areas of law in which they practice? ___ Yes ___ No

How many independent date controls are kept on all matters? ________

Select the date control systems maintained:

Computer
Smart Phone
Tickler
Two Calendars
Perpetual Calendar
Daytimer
Pocket Calendar
Other

How often are the systems cross-checked? (i.e., daily, biweekly, weekly, etc.)________________________________

What job position has the primary responsibility for maintaining the system?_________________________________

Does the applicant have a written procedure for maintaining client lists and identifying actual or potential conflicts of interest? ___ Yes ___ No

If yes, provide copy of procedure.

Is the system updated each time a new client or situation is accepted? ___ Yes ___ No

When was the system implemented? _______________________________________________________________

Does the applicant advise clients in writing of any conflict of interest? ___ Yes ___ No

Upon disclosure to the client, does the applicant obtain written consent to perform legal services? ___ Yes ___ No

Is a Conflict of Interest search run prior to accepting a client? ___ Yes ___ No

Does the applicant require the use of engagement letters for all new matters? ___ Yes ___ No

Does the applicant require the use of written fee or retainer agreements on all engagements? ___ Yes ___ No

Are declination or nonrepresentation letters issued on all issues declined by the applicant? ___ Yes ___ No

Attach sample letters.

Do suits for collection of fees have to be approved by more than one partner? ___ Yes ___ No

Does the applicant have a system requiring complaints by either a client or other counsel to be reviewed by a lawyer other than those against whom the complaint is made? ___ Yes ___ No

Do major opinion letters have to be approved by more than one (1) partner of the applicant? ___ Yes ___ No

Is new business subject to the approval of a committee or partner other than the lawyer
generating the business? ___ Yes ___ No

Does the applicant prohibit all trading and investing in client securities? ___ Yes ___ No

Does applicant’s written procedures address the conduct of employees relative to the handling of material nonpublic information? ___ Yes ___ No

Does the applicant require verification of education, qualifications and experience of all new employees (not limited to lawyers)? ___ Yes ___ No

Does the applicant have a peer review procedure? ___ Yes ___ No