Frequently Asked QuestionsWhat does "claims made" mean?
Just about all attorney's professional liability policies are now written on a "claims made and reported" basis. That means it is the policy in effect when the claim is made against you and reported to your insurance company that applies to the policy. If the policy expires before the claim is reported the insurance company, the policy will not cover the claim. Also, most policies do not cover claims the lawyer already know about, or should have know about, when the policy was purchased.
Your policy may limit coverage for your acts or omissions prior to the effective date of your policy. The insurance company may choose not to cover your prior acts due to previous claims against you or your former law firm. However, you may not need prior acts coverage if you left a large law firm that is likely to maintain insurance. Most policies cover former members of the law firm for their acts on behalf of the firm. However, if the prior firm has dissolved, you may want to purchase prior acts coverage.
A Retroactive Date is the earliest date that your policy will provide prior acts coverage. Any claim based on an act or omission that occurred prior to that date will not be covered.
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