Coverage Question Series – Part 50
Post on April 12th, 2019
This is a continuing series in which we address policy coverage questions that we routinely discuss with you and your colleagues. The answers provided are based on the basic policy form, currently LPLP-1s (effective for all policies new or renewed as of May 1, 2018). Refer to your specific policy and any endorsements attached thereto that may change coverage or the answers provided here.
The former partner of the firm, who retired before we were insured with OBLIC, received a complaint by a former client of the firm, am I covered?
Yes, subject to the other terms, conditions and exclusions of the policy. Your firm has been around for decades. It has been around so long that the firm name is not far off from Adams, Jefferson & Penn, LLP. A former partner of the firm was served with a complaint of malpractice for an error he allegedly made while still an active partner of the firm. Maybe it is a year, maybe it is twenty years later.
The OBLIC policy form identifies former partners of the Named Insured as Insureds under the policy so long as the following apply:
- the act, error or omission giving rise to a “Claim” occurred prior to such person’s deletion from coverage with the Named Insured;
- the act, error or omission giving rise to a “Claim” occurred during a time period for which the person was previously insured by a claims-made policy issued to the Named Insured or any “Predecessor Firm;”
- coverage for such act, error or omission is otherwise provided to the Named Insured under this policy.
If the facts meet each of the above criteria, the former partner would be considered an Insured under the OBLIC policy form even if the former professional carrier withdrew from the Ohio market.
As you should expect, these Q&A scenarios are based on simple hypotheticals. Coverage determinations for an actual claim are ultimately based on the unique facts, applicable law, and the Terms, Conditions, Limitations, Exclusions, and Endorsements of your policy.
Carl Marsh, Esq.