This Woodruff Sawyer blog discusses employed lawyer insurance policies, which are intended to protect in-house attorneys in the (rare) situations in which they find themselves being sued for malpractice by the corporation that employs them. This excerpt summarizes the coverages typically provided by those policies:

Employed lawyers insurance can cover the general counsel of a company, other staff attorneys, and, in some cases, legal assistants and paralegals acting under the supervision of an in-house attorney.

Some policies cover attorneys who are not employed by a company but who are acting on behalf of the company pursuant to a written agreement.

Typical coverage limits for employed lawyers policies range from $1 million to $5 million. The limit a company will purchase depends on factors like the risk tolerance of the company, the number of employed lawyers on staff, and the nature of the legal services provided.

The policy usually covers:

– All claims made against employed lawyers (unless specifically excluded) that arise out of the performance of, or alleged failure to perform, legal services for the employer

– Legal fees and expenses incurred in defense of employed lawyers accused of legal malpractice

– Amounts paid in damages or settlements, in some cases

– Punitive damages with “most favorable jurisdiction” language (with some insurers)

The blog also identifies some typical exclusions, which include securities claims, liability arising from non-legal professional services, certain employment practices claims, misappropriation of trade secrets and bodily injury, emotional distress and property damage claims.

– John Jenkins