Important Coverage Features of Lawyers' Malpractice Insurance

Various bases for malpractice actions against attorneys are available including: (1) negligence or legal malpractice, (2) breach of fiduciary duty, (3) violations of state or federal statutes, (4) common law fraud, or (5) breach of contract. Both suits by clients and suits by non-clients may be permissible.

Lawyers' Malpractice Insurance policies (also known as lawyers' professional liability policies) are not all created equal. There is no standard policy form for legal malpractice insurance. Therefore, important policy provisions can vary substantially from one insurance company to another. When comparing the policies offered by different insurers, you should pay special attention to the following policy provisions:

• Electronic Media Coverage

Most law firms use electronic media to conduct business. This coverage can respond for misdirection of email or other media such as intranet, extranet or internet connection, or loss of client information transmitted via electronic media, or unintentional spread of a computer virus into or enabling a denial of service attack on a third party computer or network, or unintentional unauthorized access, or personal injury arising from the use of electronic media such as a web site or social media.

• First Party Cyber Liability Coverage

Some insurers will reimburse the insured for up to $25,000 for the cost of hiring a third party to mitigate the potential of legal liability claims arising from any security breach that results in the loss or theft of confidential client information.

• Deceptive Trade Practices Acts (DTPA) Coverage

In some jurisdictions DTPA coverage is important. Lawyers may still be liable for certain actions under DTPA type statutes. Misrepresentations by an attorney are still actionable under some DTPA statutes. Note some legal malpractice policies do not cover all DTPA damages such as the multiplied portion of treble damages.

• Punitive and Exemplary Damages Coverage

Many legal malpractice policies specifically exclude punitive and exemplary damages. It would be preferable to have a policy that would provide coverage where permitted by law.

• Innocent Partner Protection

Criminal, dishonest or fraudulent acts by a lawyer are excluded from coverage by all policies. Via an exception to the exclusion any other innocent lawyer insured under the policy that neither participated nor acquiesced in such acts may benefit from coverage.

• Deductibles - Per Claim v. Aggregate and First Dollar Defense or Loss Only

With a "per claim" deductible, each claim against you during a policy year subjects you to a new deductible. Some policies have "aggregate" deductibles so an insured would not be charged more than one deductible per policy year. Another feature available is first dollar defense within the deductible.

• Alternative Dispute Resolution (ADR)

Some insurers will waive a percent of the deductible (e.g., 50%) or may even waive the entire deductible if ADR is used to settle a claim.

• Hammer Clause

A "hammer clause" provides if the insurance company wants to settle a claim but the insured does not consent to the settlement, then the policy will only pay the amount for which the insurance company could have settled the claim. In effect, coverage for the claim is reduced to the settlement demand. It would be preferable to have more favorable consent to settle provision.

• Loss of Earnings

Time spent defending a malpractice claim means a loss of revenue to you. Some legal malpractice policies may provide you with expense reimbursement/trial attendance coverage in the $500-$750 range for each day you are out of the office for trial, mediation, arbitration or your own deposition in defending a claim under the policy.

• Disciplinary Proceedings

Some legal malpractice policies will allow coverage for up to $25,000 or $50,000 for defense costs incurred to respond to disciplinary proceedings. This may be an additional limit and not subject to the deductible.

• Other Coverage Options

Some other coverage options available may include:

1. Predecessor firm coverage

2. Career coverage

3. Lateral hire coverage

4. Extended reporting periods (ERPs) for non-practicing, retirement or disability

Since legal malpractice insurance policies are not the same, it is important to have a knowledgeable, independent insurance agent to help you obtain competitive quotes. Broadness of coverage, premium cost, financial solvency and service levels should be the main criteria for your decision making.

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Finding a Commercial Auto Insurance Company

The road to success cannot be driven without company vehicles, which is the way it is for many business owners. They are essential to the company's livelihood and is key part of the business' continued operations.

You should never consider driving your business vehicle without the right insurance coverage, just like you'd never consider going on a job without all the necessary tool of your trade. It is tricky finding the right commercial auto insurance company. It is so important that you select one that meets the needs of your business because there are a lot of companies offering commercial auto coverage.

Of all the factors you'll need to take into account that will have the biggest impact on you and your business will be the company's experience with commercial auto insurance and the claims service they will give. As you consider different commercial auto insurance companies here are some questions you should ask your self or you independent insurance agent:

What types of businesses do they have experience with? Are they familiar with your line of work? How long has this company offered commercial auto coverages? Will they understand the needs that are unique to your specific line of business? Can they be sure that you will get the right coverage for your business? Does their customer service excel? You need fast, correct and focused on your profit, 24/7 service. And because you can't count on having the time to deal with such matters during regular business house. You may need them to handle your insurance business need on nights and weekends. Do they offer competitive and flexible products? How about their payment options? What about comparing the types of coverages, payment options and payment plans that can help small business owners to keep up necessary cash flow. How about their demonstrated record of claims experience?

Vehicle down-time kept to a minimum is vital to any business. Your profits are affected by every minute your vehicle is out of commission. Is this company known for its efficient claims service and fast, fair resolutions? For many businesses, keeping their company vehicles on the road is critical for continued success.

In many state there is a state law that you must have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the drivers; however the degree of each varies greatly.

Several jurisdictions have experimented with a "pay-as-you-drive" insurance plan which will be paid through a gasoline tax. This would address issues of uninsured motorists and also charge based on the miles driven, which could theoretically increase the efficiency of the insurance, through streamlined collection.

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Things to Consider While Choosing Commercial Building Insurance

A commercial building is one where your business is housed. Whatever is the type of your business, be it manufacturing, sales, retail, or any service, there is certain quantum of risk for which insurance is essential to protect your commercial building against diverse risks.

This is where commercial building insurance comes into picture. This insurance is required by those who have put their money in the building meant only for commercial (business) purposes. It protects the businesses against the risks such as fire, natural hazards, vandalism, etc. that can destroy or damage the commercial building.

Things to consider While purchasing a commercial building insurance (CBI) cover, you need to follow certain criteria. Based on these criteria you can have a plan regarding how much insurance you need, the time span and what should be covered under the policy, and so on. Below are few essential aspects that are to be considered while opting for a CBI policy.

• Properties covered under the policy This insurance policy covers risk for commercial building property. It includes the building as a whole, the fixtures, automobile parking place, and telephone and power installations. You need to know that it does not cover the workers' compensation, health, life and any casualty occurred to employees while they are in the premises of the building.

• Use and occupancy of the building A building sanctioned for use and occupancy shows that it is safe for human dwelling under the prescribed standard law of the land and the insurance cover is provided for these buildings only.

Few aspects like, the sort of business you establish in the building, the size of the building and the business affect the coverage of commercial building insurance. Thus, restaurants, hospitals, shopping malls, services - each of these require different amounts of insurance cover, depending upon the size. The exact amount of insurance cover is found out taking into account the use and occupancy value associated with the commercial building.

Further, if the commercial building stays vacant and unoccupied, the loss of rental income is covered by this insurance. Such loss is estimated by the insurance company by taking the rental income into account on a historical perspective. The insurance is thus significant even if the building is not occupied by businesses.

• Risks associated All businesses carry some risks inherent in them. The quantum of risk depends on the type, size, location, hazard to workforce as well as general population, proximity to human dwelling, interruption to business. Thus, if a commercial building houses a hospital, the risk involved and the coverage amount would differ from that of a retail business. Thus, you have to estimate the measure of risk and buy an appropriate amount of insurance cover to protect the same.

• Special causes of loss form Commercial building insurance is based on two types of risks - specified and special risks. Specified risks include fire, vandalism, earthquake, windstorm - that are mentioned in the policy. These risks are covered at low cost because they are given a limited coverage.

The special causes of risks leading to loss include those that are not mentioned in the policy. In other words, these risks include those things that the policy categorically rules out to cover.

Choose a reputed brokerage to get better deals Approaching a reputed insurance broker to estimate the coverage for the possible risks of your business is a wise decision. These brokers find the optimum cost of the insurance cover for your business based on the required data provided by you. A reputed brokerage firm quickly compares the quotes from different companies and advises you the best ones. Brokers get rebates from the companies and thus they can give you better service. This helps you save on your premium.

To conclude, buying CBI thus involves so many factors to take into account. However, given that you have business acumen, a knack at looking at the risks to your business, you can fairly approximate the risk and the amount of insurance you need to cover. If you are a novice at business, make scrupulous decisions while buying CBI after consulting your financial adviser and reputed insurance brokers.

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Public Liability Insurance Cost: How Much Do You Require?

You have decided to purchase public liability insurance for your business to protect it against third party claims arising from personal injury or property damage. But what about the public liability insurance cost? It is always better to know the approximate cost beforehand.

Calculating Insurance Cost The cost of public liability insurance varies considerably from one business to another. Each type of business may be required to pay a different premium based on its risks. The type of work you undertake has a major influence on the amount of premium that you need to pay. Apart from the type of work, the actual physical size of the project also determines your premium. For example, the premium paid by an electrician will be much higher compared to that of an accountant.

Another factor affecting the premium is the annual turnover or revenue of the company. Businesses making big revenue will need to pay a higher premium. Moreover, the cost of premium may also fluctuate if there are any drastic changes in the turnover of the company. Any changes should be notified to the insurer as the premium needs to be altered based on it. As the number of employees in your company increases, the premium will also rise so that they are adequately covered by the policy. You should also take into account other factors such as dollar value of your projects, whether you have subcontractors, and your work location. If you work in a high risk location such as mines, airports, and marine ports, your premium costs will also rise.

Getting Insurance The most common method of getting an estimate of your insurance is by contacting an insurance broker. An increasing number of businesses also rely on online quotation system to obtain competitive prices. It avoids the need for making appointments with brokers, and even saves your time. The best part is that you can receive special offers and even reduced premiums when you get online insurance cover. However, all businesses will not be able to purchase online cover. With larger businesses, the whole process of getting insurance will be more complex. They will definitely need the services of a qualified broker.

Reducing Insurance Cost You can reduce your premium cost in a number of ways. The first rule is cover only what you really need. For example, paying for $20 million cover is a waste for money for a small business. At the same time, make sure your business is not under-insured. Comparing quotes and shopping around for the best deal are other ways to reduce your public liability insurance cost.

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Choose Professional Indemnity Insurance to Ensure Smooth Business Operations

Professionals are expected to perform as per the standards of the professional bodies under law. They are likely to face legal liability if they fail to abide by the standards of code of conduct in their profession. Under such situations, they are in need of a support that can help them face the subsequent loss and litigations.

Professional indemnity insurance (PII) Any professional ranging from a report writer (journalism) to software designer, chartered accountant, architect, physician, etc. - all face the risk of legal liability while executing the profession in service of a third party.

Hence, they should consider protecting themselves by taking an appropriate insurance cover that can help them handle the losses resulted from these legal risks. One such cover, which is tailor made for professionals to enable them face these unexpected risks is profession indemnity insurance (PII). Every professional, thus, should buy a professional indemnity insurance to ensure smooth functioning of his business.

Things covered under this policy As a professional, if you take this insurance, you would reap several benefits as it covers the following.

• Loss of important files or data: An important aspect of business is data. While a company transacts with the client on business, the confidentiality of data is significant. For this, the parties might sign a non-disclosure agreement with few employees. Sometimes, the data or file might be unintentionally passed to the third parties because of transaction between the company and the third party. Sometimes the data or file may be lost because of technical problems. The financial loss incurred due to these actions is covered by PII.

• Accidental negligence: In course of business transactions between a company and its client, negligence can occur either because of overlooking the data or as a matter inadvertently presenting erroneous data because of some sudden impulse. A hypothetical example: One of your employees while processing the data deletes those of a client because of some sudden unexpected event. Note that the situation is distinct from one that arising because of 'negligence'. PII offers coverage for losses incurred form such kind of unintentional errors.

• Dishonesty by employees: When a company employs an individual, the assumption is that the individual would be scrupulously honest while working for the company. However, it might not always be the case. In such unforeseen circumstances, the company is likely to face liability on account of breach of contract as a result of loss of data, document, or monetary asset, etc. These crucial losses are covered under the PII.

• Intellectual property infringement: If there is any 'unintentional' infraction of copyright, trademarks, broadcasting or telecasting rights, PII would help. Note that PII is not going to help, should the infractions be deliberate.

Advantages of taking this policy Professionals are advised to buy PII in their own interest and to stay assured of smooth business. There are certain advantages of this insurance.

• PII protects a professional from any legal liability arising as a result of executing a transaction. It also compensates the policy holder by providing the cost of litigation in this regard. • Next, this policy covers the expenses involved in finding a way to rule out such legal liabilities in future. Such measure would make it easy for the parties to settle the issues without making recourse to a court of law. • Some companies put PII as a conditionality to allow a party to work with them. It is of course, to protect the interest of the company. Hence, it is advantageous for you to buy this insurance. • This insurance also protects you against liabilities as a result of accidental happening which may result in wrong doing. • If you face a legal liability, and you think that you have been maliciously targeted for a fault of none of yours, this insurance is useful. Such litigation entails massive costs and time lags. The insurance policy covers the expenses involved in this litigation. This insurance is especially useful for small and mid-sized businesses as such firms have neither the expertise nor resources to afford the litigation.

As a professional, you face liabilities for diverse reasons. It may be based on one or the other reason. Even if you are an expert in your avocation, still buy it. Who knows, you might face one on account of a common everyday impulse.

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PI Insurance Explained

Professional Indemnity Insurance is an example of very good, quality contractor insurance, and its effects can be felt instantly from its cover. The policy itself protects a contractor should they make a mistake that leads to financial loss to another party. The reason that this would be costly to a contractor is because in these cases the party will no doubt file a negligence claim against the contractor that could then be very expensive. This is where such a policy would be effective as its vital protection would cover a contractor for all costs and fees in this case. In addition, having the insurance will bolster the perception that a contractor is in business on their own account, therefore aiding their IR35 position. Plus it will give clients the reassurance that there are sufficient resources to handle any recourse in the unlikely event of an alleged breach of duty, adding value to any tender.

Many contractors are still waiting lengthy periods of time before purchasing this insurance however, but it must be advised that this could have devastating effects. Professional Indemnity Insurance is highly necessary as soon as a contractor begins a contract, and with potential negligence claims of possibly millions of pound on the line, the small annual fee is no high cost.

Because of this it is advised that contractors instantly purchase the product, as by owning such a valuable cover you will gain complete peace of mind in these cases. Many contracts need Professional Indemnity Insurance to begin a contract, the policy being a necessary requirement thus highlighting the product's immediate importance.

PI Insurance remains one of the top forms of business insurance, and by far one of the most purchased forms of contractor insurance, and it isn't hard to see why when weighing up its benefits compared to its actual cost. There are many cases of contractors suffering ridiculously high losses of up to millions because of them not owning Professional Indemnity Insurance, and any contractor would back up its importance. The policy's simplicity remains one of its most commended features, as with simply a click of a button on your mouse, a year's total and full cover could be yours, for a low price that is very hard to miss.

One of the rather unknown selling points of Professional Indemnity Insurance is that the policy boosts a contractor's perception that they are in business on their own account, therefore aiding their IR35 position. This is obviously massively helpful to any self-employed professional as IR35 enquiries are becoming more and more relevant to contractors as the HMRC continue to clamp down on so called 'disguised employment'.

When looking at all contractor insurances, it becomes clear that Professional Indemnity Insurance really is an essential policy and cannot be overlooked by contractors and freelancers alike. With its many benefits, not only concerning a professional's protection, but also their IR35 related tax status, it is a vital policy and compared to its many advantages, can be purchased easily and cheaply.

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