Insurance for Employed Lawyers

Employed lawyers professional liability coverage helps protect in-house attorneys when allegations of malpractice are made. However, employed lawyers' endorsements to directors and officers (D&O) policies are often limited in scope compared to standalone employed lawyers policies.

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What Does Employed Lawyer Professional Liability Insurance Cover?

There are numerous benefits to choosing a standalone Employed Lawyers Professional Liability insurance policy, including:

  • AM Best rated A or better carriers (admitted depending on state)
  • Broad definition of “Insured Person,” which includes in-house counsel and their entire support staff
  • Definition of “Professional Services” includes notary, moonlighting and pro bono legal services
  • Entity retentions starting at $5,000
  • Subpoena Defense Costs coverage sublimit
  • Option to include Defense Costs coverage for Wage & Hour and NLRA, WARN, COBRA & OSHA exclusions

Employed Lawyers cannot rely on D&O policies to protect them

Directors and Officers (D&O) policies are not designed to cover professional services and often have a professional services exclusion. They may contain an insured versus insured exclusion limiting coverage for claims by employees for advice and recommendations provided by the in-house counsel. D&O policies may also not cover claims against non-officer attorneys and legal support staff.

Employed Lawyers Professional Liability Claims Examples

The general counsel for a privately owned company participated in the decision to authorize the use of a trademark in certain marketing materials for the company. The alleged owners of the trademark then brought suit against the company for trademark infringement and sued the general counsel for contributory trademark infringement.

The CFO of a public company sought the advice of the company’s general counsel regarding compliance with certain disclosure requirements of the Sarbanes-Oxley Act of 2002. The advice was incorrect and, as a result, the CFO was terminated and found personally liable under the provisions of the Act. The CFO then brought suit against the general counsel, alleging negligence, conflict of interest, and breach of fiduciary duty.

The general counsel for a not-for-profit organization provided advice to the human resources manager regarding the investigation and handling of a sexual harassment allegation made against a supervisor. The supervisor was terminated after the completion of the investigation and in accordance with the general counsel’s legal advice. The supervisor brought suit against the organization and the human resources manager for wrongful termination and against the general counsel for negligence and misrepresentation.

Management Liability – when possible, the management liability and employed lawyers policy should be written with the same insurance carrier. Executive Liability, also known as Management Liability insurance, combines several traditionally separate policies—like directors and officers, employment practices, fiduciary, and professional liability—into one policy. Management Liability insurance provides a great variety of safeguards to private business owners and other corporate leaders. 

Cyber Liability Insurance – also known as Technology Errors & Omissions insurance or Technology E&O—offers cutting-edge protection for exposures arising out of internet communications and computer network activities.

Employment Practices Liability Insurance—also known as EPLI—protects your company against the financial impact of employment claims.

We Offer Court Bonds, Too

Brunswick Companies also offers a range of surety bonds, including Court Bonds. These bonds guarantee that a fiduciary will execute faithful performance of his or her duties as ordered by the court or compliance if the court’s decision is in favor of the other party. There are two major categories of court bonds issued by Brunswick Companies, which include Fiduciary Bonds and Judicial Bonds.

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