Coverage Question Series – Part 21
Post on August 17th, 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 was served with a complaint alleging malpractice but my policy expired last week, am I covered?
Possibly! 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.” However, if you were served with the complaint before your policy expired, the OBLIC policy provides an automatic 30 day grace period to report that claim. You must become aware of the claim BEFORE your policy expired. We also extended the automatic grace period for policies that are new or renewed after 5/1/2018 to a 60 day grace period!
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.