Lawyers' Professional Liability Policies are written on a claims made and reported policy form. Perhaps the most misunderstood provision of professional liability insurance policies is the concept of "claims made and reported" coverage, versus the more common form of casualty insurance known as "occurrence" coverage.

As an example, homeowners and automobile insurance provide coverage on an "occurrence" basis. Coverage for claims rising out of an accident (or "occurrence") can only be provided by a policy in effect when the occurrence, such as an auto accident, took place. If a lawsuit is filed against someone two years after an occurrence took place, the policy in effect on the date of the accident will provide coverage for the claims asserted in the lawsuit.

Contrast this to "claims made and reported" coverage provided by most legal malpractice insurance (LPL) policies. In order for a claim to be covered, the insured must have a policy in effect when the claim is made, and the claim must be reported to the carrier during the policy period.

Professional Liability Services, Inc. provides this coverage through A and A+ rated insurance companies whenever possible. We have access to 7 or 8 different primary markets and countless secondary options. Please contact us to discuss your particular case.

Commonly Used Terms