Coverage Question Series – Part 51
Post on April 19th, 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.
I work for a firm but “moonlight” legal work on the side, am I covered?
No, the work must be performed for the insured firm. Your daughter received a speeding ticket and, off your firm’s clock, you take it upon yourself to assist her. After the prosecutor turns you away, you do everything in your power to dispute the ticket. Unfortunately, your daughter was speeding and is found responsible for the fine and court costs. Unhappy with the result, she files a claim against you.
Exclusion (r) excludes “any “Claim” arising out of acts, errors or omissions by an Insured after joining the Named Insured or any “Predecessor Firm,” that occur after the “Effective Date” of this Policy, if such acts, errors or omissions were not rendered as a partner, shareholder, member, associate, owner, or employee of the Named Insured or of any “Predecessor Firm.” The Named Insured is the firm or entity under which you practice. The legal work must be rendered on behalf of the firm in order to avoid this exclusion.
Pro-tip: If you are moonlighting and, among other concerns, do not want to bother with the Prof. Cond. Rule 1.4 Notice to Client that you do not maintain insurance, OBLIC offers part-time policies for lawyers providing “Professional Services” to others on average of 25 hours per week, or less.
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.