Most legal malpractice insurance policies are “claims-made” policies. A Claims-made policy differs from an Occurrence policy in that it only covers claims that are reported to the insurance carrier while the policy is in force. A Claims-made policy will respond to claims that arise out of incidents only if they occur subsequent to a prior acts date. The prior acts date may be the date of policy inception, or may be retroactive to the first day of practice or to your first Claims-made policy. An Occurrence policy covers incidents that occur during the policy year, regardless of when the actual claim is reported to the insurance carrier. When you purchase your Claims-made policy with full prior acts coverage, you are covered if a claim comes in during the policy year regardless of when the act which gave rise to the claim occurred. For instance, if you wrote a will two years ago and made an error which is not discovered until the will is probated — rather than having to determine where your coverage was two years ago, you may rely on your current policy to respond to the claim.

Sometimes referred to as “nose” or “career” coverage, prior acts coverage is decided upon at the time you purchase a professional liability policy. It determines how far back an insurance company will cover your acts for any future claims that arise while the policy is in force. The prior acts date should be the date you began continuous Claims-made professional liability insurance coverage. If there have been gaps in coverage, a company may not agree to go back prior to such gaps.

Your first Claims-made policy will start out at a lower rate since there would be no prior acts to cover. As you see more clients and your exposure increases, so does the premium — for the next several years until you are at a “mature” rate level. If an attorney who is changing from one Claims-made policy to another wants to cover any future claims arising from previous legal work, he or she would purchase prior acts coverage at a more mature rate level, and a higher premium, than a first year attorney. For example, if he or she wants prior acts coverage for nine years of previous exposure, they would be at a mature rate level and pay a premium of approximately twice that of a first year rate level. If there is no prior acts date shown on a Claims-made policy, it means you have “full prior acts” coverage.

Some policies provide that amounts spent on defense will decrease the limits available to pay any settlement or verdict. Therefore, when deciding which limits to purchase with this type of policy, you need to consider not only the amount of any potential verdict on the files in your office, but also what defense costs might be incurred in order to arrive at the appropriate policy limits for your practice. If you are changing from a policy that offers limits in addition to or outside of the limits of liability to a policy with “defense within limits,” you should consider buying higher limits.

This is the insurance coverage that allows lawyers to sleep soundly at night! While not usually required by most bar associations, malpractice insurance is widely recommended for all practitioners. Carrying professional liability insurance is the responsible thing for lawyers to do to protect their clients in the event a mistake is made that causes damage. It also protects the financial assets of the firm. Even if you believe your clients would never sue you, you want to be covered for the costs of defending third-party claims. And while you may not intend to ever make a mistake, many non-meritorious or frivolous claims are filed for which defense can be costly and time consuming to defend. You may also be liable for the acts of other attorneys and/or staff. Most carriers exclude criminal and fraudulent acts, however, coverage is provided for innocent partners of the wrongdoers.

A quote online will be ready in just a few seconds unless the Underwriter needs additional information. If the application is mailed to us, then usually four to five working days if all the requested information is included with the application.

Some of the factors that can determine your firm’s premium are: number of attorneys to be insured, number of years of prior acts coverage for each attorney, coverage limits and deductibles requested, areas of practice, office systems and procedures, and recent claims history.

Please answer the questions to the best of your ability based on what you intend to do for your office systems and procedures.

You need to consider whether you want to rely on the continued existence of the former firm and its continuing to insure with a carrier that provides coverage for former attorneys.

When we receive your Request-to-Issue and your check.

Yes, it is included in your policy coverage.

The last page of the application indicates an effective date blank. It can be the same day as the app is completed or a day in the future. If you are currently insured, the effective date you request should be the date your current coverage ends.

If you cancel your professional liability policy, your coverage for all acts performed subsequent to the prior acts date indicated on your policy ceases. Depending on your situation, you may need to purchase an Extended Reporting Period Endorsement. Sometimes referred to as “tail” coverage, this endorsement would extend your coverage for some specified optional period. The Reporting Period Endorsement would only respond to claims arising during the specified period from incidents that occurred between the prior acts date and the cancellation date of the policy. Carriers differ in the length of Extended Reporting Period Endorsement they will offer and as to whether they will reinstate the limits of liability or reduce the limit to whatever you have left on the expiring policy.

You will have to analyze your practice type, the statute of limitations for your type of work, and, if you are in a discovery state, how long it takes to discover a loss and make a claim for a covered incident.

You will want to choose the limits of coverage that best suit the work you do. One of the best ways to determine this figure is to review the files in your office, both open files and recently closed files. Determine the maximum value of the file, i.e., if the work is transactional, determine the amount of the transaction, and then add in items such as potential interest. If the case is a personal injury matter, evaluate the maximum damages. Remember to consider all of the lawyers in the firm in order to choose the appropriate limits as all lawyers in the firm share the limits on the policy. Keep in mind that you will also have an “aggregate limit” of coverage which is the maximum amount available to pay all claims which arise within that policy year. One claim could exhaust not only your per claim limit, but also your aggregate limit for that policy year, leaving you at risk for personal exposure should other claims arise during the same policy year.

You simply need to decide what you can afford to pay in the event that a claim is made against you. Generally, the difference in premium for a lower deductible is not significant. Don’t buy a higher deductible assuming that you won’t have a claim — even a frivolous claim can generate defense costs. You should also inquire about a loss-only deductible (also referred to as First Dollar Defense) which will apply only if your defense is unsuccessful and a payment is made to the claimant.

You may make changes within the firm such as adding a new attorney or changes in the firm name by simply completing the appropriate form. Please call MLM at 800.422.1370 to request the appropriate form, or download from the links below. If you need to change the address of the firm, please notify us in writing.

There is no need to notify Minnesota Lawyers Mutual Insurance Company as long as the law clerk, paralegal or legal secretary is not a licensed attorney. If they are a licensed attorney, please contact your Underwriter.

It is not necessary to notify Minnesota Lawyers Mutual Insurance Company of changes to your area of practice mid-term. You may wait until renewal time to notify us of any such changes unless these changes significantly change your practice. Please contact a Representative if you have any questions.

You may change policy limits at any time during the policy period (subject to Underwriting approval). Please notify your Underwriter in writing if you are interested in changing your policy limits.

You may cancel your policy at any time. Please notify Minnesota Lawyers Mutual Insurance Company in writing if you wish to cancel your policy mid-term.

Yes, we offer CLE programs. Check with a MLM Representative.

Use the Adding an Attorney form included with your policy to add an attorney. To delete an attorney, please send to your Underwriter written notice of whom and date the attorney left the firm. The premium will be adjusted to reflect the number of attorneys. Any unused premium will be returned to you. We will request any additional premium need for the newly added attorney. The premium change will be pro-rated.

To report a claim, please call or write our Claim Department at:

Contact Us Toll Free: 800.422.1370
Claims Department
Minnesota Lawyers Mutual Insurance Company
333 South Seventh Street
Suite 2200
Minneapolis, MN 55402

Yes, by policy definition, this must be reported to the company. See your Policies definition for the definition of a claim.

Yes. It is best to let the claim professionals at Minnesota Lawyers Mutual Insurance Company determine coverage. If you fail to report a claim in a timely manner, coverage could be jeopardized.

Yes. The full amount of the claim might not be readily ascertainable. Late reporting could jeopardize coverage for the claim.

The claim staff would discuss with you the options available. We use local defense counsel well versed in defending professional liability claims. Defense panels of qualified lawyers are established in each state.

The deductible on the majority of Minnesota Lawyers Mutual Insurance Company policies applies only to indemnity payments. Some policies have a deductible that also applies to expense payments. Please refer to your policy and its endorsements or contact your Minnesota Lawyers Mutual Insurance Company representative.

The deductible is payable within 30 days of written demand, and will be billed as incurred by us.

Yes. You should, however, contact the Minnesota Lawyers Mutual Insurance Company's claim department immediately, prior to discussing the situation with the client. You should also consult your local ethical rules.

That will depend on the circumstances. Contact the Minnesota Lawyers Mutual Insurance Company's claim department.

The rules concerning a lawyer’s obligations in regard to returning a client’s file differ from jurisdiction to jurisdiction. Consult your local rules, and contact your Minnesota Lawyers Mutual Insurance Company claim department.

That will depend on the circumstances. Consult your local rules, and contact the Minnesota Lawyers Mutual Insurance Company claim department.

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