Employed Lawyers Professional Liability Insurance by Soma

Employed Lawyers Professional Liability, or Errors & Omissions (E&O), is a specialized insurance policy that protects a company and its in-house attorneys from claims of negligence, errors, or omissions in the legal services they provide to their employer. It covers legal defense costs and potential settlements or judgments. This policy is crucial for any organization that relies on an internal legal team for advice and counsel on corporate matters.

The primary difference is the client. A law firm's policy covers services provided to external, third-party clients. An Employed Lawyers policy covers legal services provided by in-house counsel to their one and only client: their employer. The risks are different, focusing on internal corporate matters, regulatory compliance, contract management, and employment law advice, rather than litigation for multiple external parties.

The policy typically covers the company itself (the entity), as well as all past, present, and future salaried attorneys on staff. It also extends coverage to other members of the legal department, such as paralegals, legal assistants, and support staff acting under the supervision of the employed lawyers. This ensures the entire legal function is protected from professional liability claims arising from their work for the corporation.

Coverage applies to a wide range of alleged wrongful acts, including providing incorrect legal advice, failing to file documents correctly, errors in contract drafting or review, and conflicts of interest. It can also respond to claims from fellow employees, shareholders, or regulatory bodies who allege financial harm to the company due to the legal department's professional negligence. It specifically addresses the unique exposures of advising a single corporate entity.

Directors & Officers (D&O) insurance covers claims against leaders for their managerial decisions, not for the professional services they provide. Employed Lawyers E&O specifically covers the *professional legal services* rendered by the in-house team. A claim could easily fall in the gap between these two policies. For example, a bad business decision is a D&O issue, but a poorly drafted contract that led to that decision is an E&O issue.

Premiums are based on several factors, including the size of the legal department, the company's industry and revenue, its litigation history, and the scope of responsibilities handled by the in-house team (e.g., M&A, intellectual property, international law). The desired limit of liability and deductible amount also significantly impact the final cost. A thorough risk assessment helps in securing the most accurate and competitive pricing.

Our process begins with a deep dive into your company's operations and the specific functions of your legal team. We then leverage our extensive network of specialty carriers who understand the nuances of corporate counsel liability. By presenting your risk profile to the right markets and highlighting your strengths, we generate multiple competitive quotes. We help you compare the policy language and terms to ensure you get the best possible coverage.

Should a claim arise, you should notify us at Soma immediately. We act as your advocate, guiding you through the process of formally reporting the incident to the insurance carrier. We help ensure all necessary documentation is provided, facilitate communication between your team and the insurer's claims department, and monitor the process to ensure it is handled efficiently and fairly according to the terms of your policy.