ARAG > Program Information > Professional Liability

Protecting Those Who Represent Others
Current statistics show that in any given year, a minimum of 5 to 6 insured lawyers out of every 100 will experience a malpractice claim*.

It is prudent for every law office to purchase proper lawyer's professional liability insurance coverage through a reliable provider.

There is a lot to know about professional liability insurance. From learning about all the ways it protects you and your firm to deciding which coverage options are best for you.

Marsh Consumer, a service of Seabury & Smith, Inc., specializes in providing professional liability insurance to law firms. They have been helping lawyers for over 30 years and are endorsed by more state bar associations than any other national broker.

Program Overview
The Lawyers’ Proliability Program covers ARAG attorneys for negligence claims as a lawyer, as well as activities as a title insurance agent, arbitrator, mediator, fiduciary, professional board member or notary public. Marsh provides one of the broadest policies available. Click for a general overview of what the Marsh program can offer your firm.

Highlight	Advantage
Service that specializes in professional liability	Each sales representative is an insurance expert specializing in lawyer's professional liability insurance. One dedicated representative handles your application from start to finish. They make sure you have the right protection, and will explain about Marsh's special credits, discounts and financing options.
Premium discounts and finance options	When determining the rates, the program underwriters look for a number of factors that can help you keep the cost affordable. Finance options allow you to spread the premium over the year, rather than being forced to make one large payment.
Wide range of liability limits and deductibles	A variety of coverage options allow you to tailor your individual policy to your firm's specific needs.
Claims expense coverage	Coverage options differ by carrier. Please contact your local Marsh representative for details.
Extended claims reporting period coverage	Coverage options differ by carrier. Please contact your local Marsh representative for details.
Prior acts coverage available	When you hire new attorneys or change carriers, this important coverage lets you secure protection for claims that occurred before they were hired, or before your policy became effective.
Personal injury liability	Coverage options differ by carrier. Please contact your local Marsh representative for details.
Risk management services	Free services are available to help you educate yourself and the members of your firm on how to avoid potential claims, saving you time and money.
Administered by Marsh Affinity Group Services	The Marsh representatives specialize in lawyers' professional liability, and bring with them a wealth of expertise. They provide professional liability coverage to over 17,000 law firms nationwide.

Claims Made Coverage
Typically, liability policies are written under an "occurrence" basis. Meaning, the claim is filed with the insurance company based on the date it occurred.

Professional liability policies are different in the respect that they are written on a "claims made" basis. Meaning, that the limits and deductibles in force at the time the claim is made are what govern policy limits. The error could have occurred six months ago, but if the claim is just being reported now, the coverage in force today applies.

Like all professional liability policies, the Arch plan is written on a claims made basis.

Limits of Liability
Multiple limits of liability are available, from $100,000/$300,000 up to $10,000,000/$10,000,000.

Within the split limits (i.e., $100,000/$300,000) the first number refers to the "per occurrence" limit, and the second number refers to the "aggregate" limit. Meaning, the policy will pay up to the first number per claim, and up to the second number during the course of the policy year.

When selecting a specific coverage, it is important to take an objective look at the potential damage to your practice or firm from the biggest case. Ask yourself how much it would cost to cover a claim, and assess this realistically. There should be enough coverage to protect yourself against the worst-case scenario.

Prior Acts Coverage
Since professional liability policies are "claims made" policies, how are claims handled that are reported today for problems that occurred in the past? This becomes an issue when a firm switches insurance carriers or hires new employees.

For example, what if you hire a new attorney today and tomorrow he is sued for negligence arising out of work he did six months ago for a different firm? Your policy will only pay for the claim if you have Prior Acts coverage.

This is an important issue, because some carriers to do not offer Prior Acts protection. The Marsh-administered policy allows you to purchase up to 8 years of prior acts.

Discounts Available
When calculating the rate for your firm, the following areas may generate premium credits (or debits):

Continuing education
Staff size
New lawyer
Part-time attorney
Claims frequency
Loss control
Lateral hire coverage exclusion
Docket control

Deductibles
The Lawyers' Proliability Program offers you a wide range of deductibles. They may apply to each and every claim or may be aggregated on an annual basis.

The deductible may apply both to loss and defense costs, and defense costs may be deducted from the limit of liability, or they may be paid in addition to the limit. You may prefer a higher deductible if you are looking for a way to reduce your premium and assume more of the risk yourself.

Marsh's representatives are well versed in helping you decide which deductible option will provide your firm with the best combination of cost and coverage.

Claim Handling
Arch is known as having superior claim handling, successfully protecting the assets and reputations of lawyers insured with them. Their claims specialists exclusively handle claims against lawyers and only in a given jurisdiction so they are experts in that region.

Administrator: Marsh Consumer, a service of Seabury & Smith, Inc.
Marsh is the largest association insurance program broker and administrator in the world, serving more than 17,000 law firms nationwide. It is endorsed by more state bar associations than any other national broker. Marsh's goal is to provide the best possible service and coverage in the complex area of Lawyers' Professional Liability Insurance.

This disclosure is an outline of coverage and a summary of a typical policy. The policy should be consulted to determine terms, conditions, exclusions and limitations.