Coverage Question Series – Part 8
Post on May 18th, 2018
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-1r; refer to your specific policy and any endorsements attached thereto that may change coverage or the answers provided.
I had insurance with OBLIC five years ago when I missed the deadline to file but I cancelled my policy two years ago, am I covered?
Nope. Professional liability policies are not like your car insurance. Virtually all professional liability policies, including OBLIC’s, are claims-made and reported policies. What this means is that your coverage is limited to only those “Claims” that are first made against you and reported to us during the “Policy Period.” In order for you to have coverage, you first need have to have an active policy. That car wreck of a case five years ago is not covered if you are only now reporting it two years after you cancelled your policy.
Practice Pro-tip: Do not let your policy expire before renewing! It doesn’t take years for there to be no coverage, only a day. Claims-made and reported policies require that the claim is made and reported to the insurer during the “Policy Period.” Failing to renew before your policy expires can expose you and your firm to claims that are filed in that window of no coverage.
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.