Insurance policies can feel confusing for busy attorneys. Terms like claims-made, retroactive date, or aggregate limits may seem technical, but misunderstanding them can leave a firm exposed.
A claims-made policy covers work performed during the policy period as long as the claim is reported while the policy is active. Occurrence policies protect work performed during the coverage period regardless of when a claim arises. Knowing the difference helps prevent coverage gaps.
Other key terms include tail coverage, deductibles, exclusions, and aggregate limits. Tail coverage extends protection for past work, deductibles determine the amount paid before insurance responds, exclusions identify what is not covered, and aggregate limits cap total payouts during the policy period.
Understanding these terms helps attorneys make informed decisions, avoid gaps in coverage, and ensure policies align with the risks their firm faces.
Learn more about professional liability coverage for lawyers.