Because mistakes by a lawyer are often not discovered until years later, legal malpractice policies are uniquely “claims made” policies, meaning coverage exists for claims made and reported to the carrier during the policy period in effect. This is different from an auto or homeowner’s policy which is “occurrence based.”

The easiest way to explain “claims made” is through an example:

“CLAIMS-MADE” EXAMPLE: Libby Lawyer purchases a malpractice insurance policy for the term January 1, 2020-January 1, 2021.  She renews her policy a second time for the term January 1, 2021-January 1, 2022.  On December 10, 2021, Libby is served with a malpractice lawsuit filed by Connie Client alleging she missed a deadline in February 2020.  Libby timely reports the claim to her carrier on December 15, 2021. As such, the policy that covers this claim is the second policy with a term from January 1, 2021-January 1, 2022, because…