Posted on 01 Nov 2011
A new policy from the Chubb Group of Insurance Companies helps protect the personal assets of in-house attorneys.
Employed Lawyers Professional Liability by ChubbSM offers in-house attorneys and their employers broad protection against allegations of legal malpractice stemming from the services provided by in-house counsel for activities such as the review of shareholder communications and the issuance of legal opinions to the board of directors. Coverage is provided for judgments, settlements and defense costs. It also extends to civil penalties leveled against in-house counsel under the Foreign Corrupt Practices Act.
“Increasingly, in-house counsel are being sued by creditors, customers, vendors, government regulators, competitors, shareholders and employees,” said Andrea Wysocki, assistant vice president and employed lawyers professional liability product manager for Chubb. “Even if an in-house attorney has done nothing wrong, the attorney and his or her employer can face significant defense costs.”
Chubb’s new legal malpractice policy offers broad definitions of “claim” and “insured” to help close the coverage gaps that may be left by the company’s general liability, umbrella, and directors and officers liability insurance. The “insured v. insured” exclusion has been narrowed; claims brought against in-house counsel by an employee or executive of the company are not excluded, nor are claims brought by former in-house counsel who have not served in that role for more than one year prior to making the claim. In addition, even if a claim has not been triggered, the policy provides up to $10,000 for legal fees if an in-house attorney is served with a subpoena in connection with an alleged wrongful act.
The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 8,500 independent agents and brokers. Chubb’s global network includes branches and affiliates in North America, Europe, Latin America, Asia and Australia.