Exciting Enhancement available only to PA attorneys - All CNA LPL policies in the state of Pennsylvania will now include the following coverage regarding Engagement letters:

If the Insured utilized an engagement letter in connection with the legal services that are the subject of a claim, and such claim is otherwise covered under the Policy, then the Insured’s deductible applying to such claim will be reduced by 50%, provided that the engagement letter:

• includes, at a minimum, the following information:
  1. a specific description of the scope of legal services to be performed by the Insured;
  2. the identity of all clients for whom the Insured agreed to perform such legal services;
  3. the fee arrangement for such legal services; and
  4. a description of the Named Insured’s file retention and destruction policy; and
• was signed by all clients identified in such engagement letter prior to the Insured’s commencement of representation of such clients for the legal services described in the engagement letter, but in no event more than thirty (30) days after the commencement of such representation.

In no event shall the amount of the deductible waived hereunder exceed $25,000.

• Comprehensive coverage and policy features tailored to meet the unique requirements of law firms in Pennsylvania, with continuous coverage, full prior acts available and your written consent required before CNA can settle a claim. From solo attorneys to large firms, USI Affinity and CNA can design coverage to protect all size law practices
• 5% Bar Association membership credit. This 5% credit will be applied to your Lawyers' Professional Liability Policy premium for membership in the Philadelphia Bar Association, on a per attorney basis
• 5% risk control credit per attorney for two years after taking a qualifying CNA risk management seminar
• Limits of Liability up to $10M per claim/$10M aggregate
• Insured’s written consent required to settle a claim
• Continuous coverage provision
• Non-cancellable except for non-payment of premium
• Full prior acts coverage available
• Supplementary payments for disciplinary proceedings ($50,000/$100,000)
• Discrimination Complaint Coverage ($25,000)
• Supplementary payments for loss of earnings ($500/$50,000 per insured)
• Reduced deductible for early claim resolution
• Assistance in responding to a subpoena (unlimited)
• Privacy Event ($10,000/$20,000) and Public Relations Event ($25,000/$50,000) expense coverage
• Supplemental claim expense benefit, excess of the limit of liability

Why do I need Lawyers' Professional Liability insurance?

Under the new PA Rule 1.4 (c), firms that do not carry sufficient lawyers' professional liability insurance will be required to notify clients in writing. Specifically the rule requires lawyers to inform clients if they do not have legal malpractice insurance of at least $100,000 per occurrence and $300,000 in the aggregate per year, and if at any time legal malpractice insurance drops below either of these amounts.

I already have lawyers' professional liability insurance. Why consider the Philadelphia Bar Association’s plan?

If you already have coverage, it’s advisable that you look at two key areas: continuous coverage, under which you’re covered even if you fail to report a potential claim against you; and the consent-to-settle clause, which compels you to settle even if you wish to make a defense on principle. The Philadelphia Bar Association’s plan offers continuous coverage and does not include a consent-to-settle provision — two benefits that set it apart from other plans.

What is the difference between defense inside and outside?

Defense Costs Inside the Limits of Liability means that both the loss amount and claim expenses are deducted from the available limit of liability, and reduce the amount of your available limits to pay the actual claim. Defense Costs Outside the Limits of Liability means that only the damages/settlement amount is deducted from the available limit of liability, and that defense costs are in addition to the limits of liability.

What are the different deductible options that you offer?

Loss and/or Defense Per Claim: The deductible applies for each and every claim, to loss and defense payments.

Loss and/or Defense Annual Aggregate: The deductible applies for each and every claim, to loss and defense payments, but is limited to the aggregate for the policy period.

Loss Only Per Claim: The deductible applies for each and every claim, but is limited to loss payments only.

Deductible options are subject to underwriting.

What is a legal malpractice claim?

A legal malpractice claim is a demand made upon any insured for loss, as defined in each of the coverage units including, but not limited to, service of suit or institution of arbitration proceedings or administrative proceedings against any insured.

What is a potential legal malpractice claim?

A potential legal malpractice claim is any act, error, omission, circumstance, or personal injury that might reasonably be expected to give rise to a claim against any insured under the policy; or any breach of duty to a client or third party that has not resulted in a claim against an insured.

What is an Extended Reporting Period (ERP) or "Tail" coverage?

Extended Reporting Periods are used to provide coverage for claims that may be reported after the end of a claims-made policy period. The option to extend the reporting period does not extend the policy period. The ERP cannot be renewed or extended.

Interested in Applying for Lawyers' Professional Liability Coverage?

Download a quick and easy-to-complete indication form! Or, download a full application for Lawyers' Professional Liability coverage to complete and return at your convenience.

Download Indication Form (A non-binding estimate of premium rates.) 

Download Application

Return via fax: 610.537.2262 

Or E-mail: mark.lefever@usi.com

Why You Should Consider Lawyers' Professional Liability Coverage

Lawyers' Professional Liability Coverage helps protect law firms from costly legal malpractice lawsuits. Philadelphia law firms that do not carry this coverage leave themselves open to a host of lawsuit possibilities, the most common being:

Legal malpractice (a former client unhappy with the service or judgments they received.)

Suits that may arise out of a former client’s assertion that the bill is too high, unjust or more commonly overdue.

In some cases, a law firm may be named as a defendant in a shareholder lawsuit for work they did for that client.

Lawyers' Professional Liability Insurance protects firms in the event they are successfully sued by actions of current firm attorneys; current employees such as paralegals and investigators; former employees and, in some cases the actions of current employees at a previous firm.

Having Lawyers' Professional Liability insurance is an advantage for your firm.

Law firms in Pennsylvania are not required to have Lawyers' Professional Liability Coverage. However, if your firm does not carry Lawyers' Professional Liability, Rule 1.4 (c) of the Pennsylvania Rules of Conduct states that you must disclose this fact to your clients and prospective clients — this may put you at a disadvantage when compared to covered firms.