If you are trying to decide what lawyers’ professional liability limit is appropriate, and article entitled Walking the Tightrope: Defending Low Limit Legal Malpractice Cases is worth a read.
Policy limits usually include defense costs in the limits. With such a depleting limits policy, insureds, insurance companies and defense counsel can face tough choices about the appropriate level of discovery to take. Trial of the case may be difficult to accomplish within the policy limit. It is also not uncommon for plaintiffs in such cases to make an early demand for the policy limit.
All TLIE policies are depleting limits policies, although some have an additional available expense allowance. The expense allowance can be used only for expenses, and the expenses within the allowance do not deplete the amount remaining for defense or settlement of claims.