TBA Law Blog

TBA Law Blog

Solo in a Box Spotlight: Understanding Insurance Needs

Posted by: Stacey Shrader Joslin on Oct 31, 2014
With more Tennessee attorneys – especially new lawyers – deciding to “hang out” their own shingle and begin a solo or small firm practice, the TBA has developed the Solo in a Box Toolkit. Each issue of E-DICT this year will spotlight one of the toolkit’s 12 sections. This month we look at the kinds of insurance lawyers should consider.

In the “Understanding Insurance Needs” section, the Solo in a Box Toolkit looks at the kinds of insurance products lawyers should consider. First, it addresses the importance of malpractice insurance. When starting a solo practice, lawyers want to minimize overhead expenses, but professional liability insurance should be considered a necessary expense. Lawyers should consider two types of malpractice coverage: “claims-made and reported” and extended reporting (“tail”).

Claims-Made and Reported – This type of malpractice protection is the most common. But it is important to know that the relevant date to determine coverage is when the claim is made and reported, not the date of the alleged error or omission. This is different from personal auto or homeowners policies, in which coverage is determined based on the policy in effect on the date the event.

Extended Reporting – This type of malpracticeprotection may be obtained to cover claims first made and reported after the expiration or termination date of the policy. If a lawyer changes malpractice carriers over the course of his career, it is essential that any new policy include coverage for all prior acts.

In addition to malpractice insurance, solo practioners should consider the following types of insurance:

Business-Related Coverage:
Personal Coverage:
Workers’ Compensation
Health
Business Owner or Combined Business Package
Life
Property
Disability
General Liability
Auto
Business Interruption/Continuation
Umbrella
Office Equipment
 
Library 
Important Papers 
Employee Dishonesty 

Need Help?
TBA Member Insurance Solutions provides Tennessee lawyers with exclusive benefits, personalized service and pricing discounts on insurance and financial support products. Services include:

Contact TBA Membership Director Kelly Stosik, (615) 383-7421 to learn more.

Coming Up Next: Finance and Budgeting

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