Industry-Best Policies & Service

At Protexure Lawyers, we pride ourselves on giving our customers the best policies and service available in the industry. Not to be forgotten, however, is the importance of educating our customers. We want you to understand your policy and coverage as well as we do. Below are some of the most often misunderstood terms in a Professional Liability Insurance Policy.

PRIOR ACTS DATE

The prior acts date, also referred to as the retroactive date, represents the date after which services you provide are covered by your professional liability insurance policy. The prior acts date typically is the effective date of the first claims made policy you purchase and will continue to be shown on subsequent continuously renewed policies.

SPLIT LIMIT OF LIABILITY

Split limits define the “per claim and the aggregate limit” the insurer will pay. For example, a limit of $1,000,000/$2,000,000 means that the maximum payment on any one claim reported during the policy period is $1,000,000 and the maximum payment for multiple claims reported during the policy period is $2,000,000. There is an increased premium charged for the split limit versus a single limit option.

EXPENSES OUTSIDE THE LIMIT OF LIABILITY

Professional liability policies will pay for covered damages you are found to be responsible for and for expenses paid to defense counsel to represent you when a claim is made. Insurance companies may offer an option where the limit of liability will only be applied to actual damages paid, with the expense benefit paid outside the limit of liability. This option will result in a higher premium when compared to a policy with expenses paid within the limit of liability.

AGGREGATE DEDUCTIBLE

An aggregate deductible is an option that limits your contribution to the deductible amount shown on your declarations page, regardless of the number of claims reported during the policy period. This option will carry a premium surcharge compared to a policy offered with a per claim deductible.

FIRST DOLLAR DEFENSE

First dollar defense is a deductible feature that converts the deductible to only apply in the event damages are paid to resolve a claim against your firm. The company pays all expenses and fees in handling the claim. This feature will result in a surcharge to your premium.

EXTENDED REPORTING PERIOD

Extended reporting, also referred to as tail coverage, provides for the reporting of claims following the termination of your last lawyer professional liability insurance policy. This coverage is especially important when your firm ceases to exist and allows you to have continued coverage for the services you provided prior to closing your practice. Options are typically for 1-6 years.

PRIOR ACTS DATE

The prior acts date, also referred to as the retroactive date, represents the date after which services you provide are covered by your professional liability insurance policy. The prior acts date typically is the effective date of the first claims made policy you purchase and will continue to be shown on subsequent continuously renewed policies.

SPLIT LIMIT OF LIABILITY

Split limits define the “per claim and the aggregate limit” the insurer will pay. For example, a limit of $1,000,000/$2,000,000 means that the maximum payment on any one claim reported during the policy period is $1,000,000 and the maximum payment for multiple claims reported during the policy period is $2,000,000. There is an increased premium charged for the split limit versus a single limit option.

EXPENSES OUTSIDE THE LIMIT OF LIABILITY

Professional liability policies will pay for covered damages you are found to be responsible for and for expenses paid to defense counsel to represent you when a claim is made. Insurance companies may offer an option where the limit of liability will only be applied to actual damages paid, with the expense benefit paid outside the limit of liability. This option will result in a higher premium when compared to a policy with expenses paid within the limit of liability.

AGGREGATE DEDUCTIBLE

An aggregate deductible is an option that limits your contribution to the deductible amount shown on your declarations page, regardless of the number of claims reported during the policy period. This option will carry a premium surcharge compared to a policy offered with a per claim deductible.

FIRST DOLLAR DEFENSE

First dollar defense is a deductible feature that converts the deductible to only apply in the event damages are paid to resolve a claim against your firm. The company pays all expenses and fees in handling the claim. This feature will result in a surcharge to your premium.

EXTENDED REPORTING PERIOD

Extended reporting, also referred to as tail coverage, provides for the reporting of claims following the termination of your last lawyer professional liability insurance policy. This coverage is especially important when your firm ceases to exist and allows you to have continued coverage for the services you provided prior to closing your practice. Options are typically for 1-6 years.