Employed Lawyers Insurance | What, Why, and How Much Does It Cost?
Do you have in-house attorneys? A general counsel? Want to know about employed lawyers’ insurance for your firm?
In this video and post, we will review employed lawyers’ insurance – what – why, and how much!
Employed Lawyers Professional Liability Insurance, as it’s formally known, is an E&O or Professional Liability coverage form that protects lawyers employed in corporate settings rather than in law firms.
These attorneys are commonly known as the company’s General Counsel or In-House Attorney.
General Counsel or in-house attorneys can be commonly found in private equity firms, venture capital firms, and hedge funds as well as larger private firms where they provide legal counsel to the company’s leadership.
Why is Employed Lawyers Insurance coverage needed?
For a few reasons.
First, protection for errors made by in-house attorneys would not be covered by the firm or fund’s general liability or D&O insurance since they are providing a professional service to the firm.
The claims that can arise from employed lawyers would likely not be covered under a fund’s D&O / E&O policy since that is specifically designed to cover claims arising from errors and omissions in the conduct of the fund.
Second, the same types of claimants alleging a wrongful act against a private firm or a fund may sue the in-house attorneys working in your company.
Creditors, vendors, government regulators, customers, shareholders, competitors, and even your own employees can sue your general counsel / in-house attorneys for legal malpractice.
What Does it Cover?
In a nutshell, employed lawyers insurance covers your in-house attorneys from allegations of errors and omissions while carrying out their legal duties while working for your company.
Employed Lawyers coverage can be purchased as a stand-alone policy, but some insurers can include it as part of your D&O policy.
This “add-on” to a D&O policy is not recommended as it’s not as broad as stand-alone coverage, and usually, it’s sub-limited to a lower limit of coverage.
A stand-alone policy provides your in-house attorneys with dedicated coverage without sharing limits with your D&O policy.
It is broader in its scope of protection and can include pro bono work, as well as “moonlighting” – this is where an employed attorney gives legal advice to someone other than the insured entity of your company.
What does it Cost?
As always this is a difficult question to answer because it’s going to depend on several factors.
The industry the company is in, the size of the company, geography, the number of attorneys covered, the limits of coverage and retention purchased, and so on.
But roughly speaking, a $1,000,000 limit of coverage for employed lawyers in a mid-sized firm will run about $1,500 to $3,500 per year for a single attorney.
More attorneys on staff will, of course, cost more.
If you’d like to find out more about employed lawyer’s insurance and get a firm quote, why not give me a call or drop me an email and let’s chat
To get started, click the button above, “Get Insured Now.” – let’s talk and see if we fit your business well.
Gordon Coyle is The Coyle Group’s CEO and a seasoned business insurance expert with over 40 years of experience and four professional designations. He specializes in helping businesses with 25 to 1,000 employees navigate the complexities of risk and insurance, from cyber insurance to D&O protection and everything in between. Gordon is passionate about providing tailored solutions that protect businesses, their owners, and their futures.
Need guidance on your business insurance? Contact Gordon for help!
