Ask the Underwriter

Q.

What are the consequences of gaps in coverage under "claims-made" policies?

A.

There is no coverage if a suit is filed against the attorney while the policy has lapsed. If you obtain coverage in the future, coverage for acts, errors or omissions may not be provided for an act, error or omission prior to the gap in coverage. We recommend firms have an agreement with its members regarding purchase of tail coverage in the event of dissolution. Replacing your policy on time prevents a gap in coverage.

Q.

Do engagement letters help in the defense of a malpractice claim?

A.

Using engagement letters can be crucial to malpractice avoidance. Legal malpractice claims can be successfully defended when the production of an engagement letter can establish the defined and limited responsibilities of a lawyer to a client. The initial interview with a client should always be followed by an engagement letter setting out the scope of representation and terms of compensation including responsibility for costs.

Q.

Will AIM insure attorneys or law firms that are located outside of Alabama?

A.

To be eligible for insurance from AIM a firm must be engaged in the private practice of law in Alabama. All members of the firm must be admitted to practice and in good standing with the Alabama State Bar. Firms who have an office or an attorney located outside of Alabama are ineligible for insurance. AIM’s rates and coverage is intended for attorneys who are licensed and in private practice in Alabama. Coverage, however, is provided for claims occurring anywhere in the world provided the claim is made within the United States, its territories or Canada.