Posts Tagged ‘Professional liability insurance for’

He Looked Before He Leaped

January 26, 2012

A partner with an established firm located in central New Jersey asked me smart question. Questions that come before the firm does something and include the words, “What are the ramifications of…” are always smart questions.

In this case, the attorneys that are with the firm are all admitted only in New Jersey. A prospective new hire is admitted in both New Jersey and New York. What are the ramifications of having an associate that is also licensed in New York?

Traditionally, just being licensed in another state doesn’t have any impact on professional liability insurance. While I have seen policies with specific state exclusions, these are rare in my part of the country. Some carriers ask what precautions are taken to ensure compliance with state specific issues like statutes of limitations if the firm accepts cases in states where the firm does not have offices. It is not a big deal, they just want to make sure the firm is taking prudent steps to avoid stepping into a problem.

New York State has some unusual workers compensation regulations that may come into play for out of state firms, depending on the amount of time firm personnel spend in New York. These are easily addressed, just let your agent know before you send people to New York.
Of course, each carrier’s policy contains different language and endorsements. For specifics on how your treats other states call your agent.
Kelan J. Vorbach, CIC is the Professional Liability Program Manager with John B. Wright Insurance. You can check him out at For a consultation call 732-223-6611 ext. 108.


How does a new practice area affect professional liability?

October 17, 2011

Kelan J. Vorbach, CIC

A client sent me a great question,

 “If I handle a divorce and family law wasn’t specified on my malpractice application, do I need to to inform my carrier?”

You don’t have to tell your carrier immediately but you should talk to a professional liability specialist before venturing into any new area.  Most policies cover without limitation to the areas indicated on the application (assuming you disclosed all areas that applied at the time of the application). New areas must be disclosed on renewal.

 However, some areas dramatically increase your price for years, even if you only perform a one time service. Since it is better to know what you are getting into you should consult with an agent versed in professional liability before you are committed. A general practice firm that dabbles in a high risk area can spend more in premiums than they made in fees. 

If you have a question write me or call 732-223-6611.

How do you reduce the risk of a new hire creating professional liability problems for your firm?

October 12, 2011

Kelan J. Vorbach, CIC

It is critical to vet the attorney before hiring. A great tool to do this is a New Lawyer Supplement form that you can get from your professional liability carrier. These forms ask probing questions about claims and circumstances involving the individual attorney. While the carrier may not require the form until renewal time it is better for the firm to know BEFORE hiring.

You should be careful about files the new attorney is bringing from the old firm. These can be a source of claims so ask questions and be prepared to probe deeper.

Once you’ve made the hire, train and observe to make sure the new attorney complies with your firm’s standards and procedures. Their last firm may have had different controls and their routines may not fit with your system.

To learn more about this or any other lawyers’ professional liability question, or to get a second opinion on your policy, please call me at 732-223-6611 ext. 108.