New Lawyers Professional Liability Product Announced By Munich Re Specialty Insurance Helps Cover The Insurance Gap
Munich Re Specialty Insurance today announced the introduction of Lawyers Professional Liability (LPL) insurance, an errors and omissions policy specially designed for mid-size law firms.
“Law firms have specialized risk management needs that are not comprehensively addressed by standard property and casualty insurance policies,” said Marcia Blanco, Head of Professional Liability Underwriting, Munich Re Specialty Insurance. “Our Lawyers Professional Liability coverage fills that insurance protection gap by offering law firms a tailored policy to meet their needs with the flexibility to reflect current trends in the market supported by expert claims service.”
The LPL policy provides up to $5 million in primary or excess liability coverage for errors or omissions that cause financial harm to another person or entity, including misrepresentation, violation of good faith and fair dealing, and inaccurate advice, subject to the actual terms of the policy. The policy includes payment for damages for covered claims as well as the cost to defend against such claims. Policy highlights include:
Broad definition of insured including independent contractor and predecessor firm
Broad definition of professional services
Innocent insured coverage for intentional acts
Personal injury coverage
Non-practicing Extended Reporting Period
LPL claims are managed by a dedicated claims team that understands the complexities and nuances that accompany these types of lawsuits.
“Law firms may face significant liability when there is a conflict of interest, a deadline that was missed or a poorly drafted engagement letter,” said Blanco. “Many firms may self-insure against a professional malpractice lawsuit, but the rising costs of defending such claims and the increasingly litigious nature of clients, means that this practice could be financially devastating to a mid-size firm. Multimillion-dollar lawsuits are not uncommon and defense costs continue to rise making this a potentially costly lawsuit for any size law firm to defend against.”
Munich Re Specialty Insurance Announces the Release of a New Miscellaneous Professional Liability Product
Munich Re Specialty Insurance (MRSI) announced the release of a Miscellaneous Professional Liability product for non-specialist, commercial businesses.
Miscellaneous Professional Liability (MPL) covers liability and defense costs from claims that allege errors or omissions in the rendering of professional services. MRSI will offer the new product through select wholesale brokers with a focus on coverage for consultants, financial services, human resources, insurance-related and real estate professionals. Coverage is offered on an admitted and non-admitted basis and is available on a primary and excess basis.
“Munich Re Specialty Insurance offers brokers and the market a product backed by a breadth of experience and an elite level of expertise,” said Marcia Blanco, Head of Professional Liability, Excess & Surplus Underwriting, Munich Re Specialty Insurance. “Our talented and seasoned underwriting team are based in offices located in Philadelphia, Atlanta, Chicago, and San Francisco. Our regional organization provides a customer-centric approach to business. We understand the local markets and regulations and can tailor our MPL product to fit the customer’s needs.”
MPL claims will be handled in the Philadelphia claims home office by a dedicated in-house legal team with expertise in litigation and coverage defense in professional liability.
“Our partners rely on us for our specialty insurance expertise,” said Blanco. “Our Miscellaneous Professional Liability product further bolsters MRSI’s offerings.” MRSI plans to launch additional lines of professional liability coverage later in 2020.