A recent post from Law.com, shared by a member on LinkedIn, focused on a bankruptcy court forbidding a law firm from purchasing the extended reporting period available to it under its existing policy.
The ERP is priced at over 1omm, and the deductible is 2mm, so there’s a good chance that the individual attorneys protected by that policy would be unlikely to chip in the funds to pay for the tail. However, since professional liability can rarely be passed off to a corporate entity or partnership, and individuals tend to remain liable, one would think that perhaps the individuals would like to at least make a choice about purchasing tail. They would still have to pay the retention, should a claim arise, but at least there would be a carrier standing by ready to defend them, and they would have coverage for a catastrophic defense or outcome.
This week’s Knowledge Knugget (coming out Thursday a.m., 3/5) will explore this topic in more detail.