Attorneys » Zurich American

Zurich American Insurance Company, a member of Zurich Financial Services Ltd, is rated A (Excellent) VX by AM Best. The XV financial strength designation is the highest offered by AM Best. The Zurich lawyers professional liability policy form has a number of unique features that make it an attractive option for lawyers and law firms nationwide. Consider the following:

1. Continuity of Coverage. Whenever a policy renews, the risk arises that an actual or potential claim will "fall through the cracks" becoming subject to declination for failure to timely report during the policy period in which the claim arose. This provision insures that coverage will not be forfeited by late reporting so long as the insured maintains continuous coverage with Zurich. (See I.A.2)
2. Consent to Settle. Under the express terms of the contract, no claim is to be settled without the written consent of the insured. (See I.C)
3. Worldwide Territory. Coverage is afforded under the Zurich policy on a true worldwide basis, applying to claims and suits filed anywhere in the world. (See V.A)
4. Attractive Deductible Options. On a case by case basis, underwriters may authorize qualified applicants zero deductible or loss only deductible options. This later option means that the deductible does not apply to defense costs, only to any ultimate judgment or settlement payment made to the third-party claimant.
5. Covered "Legal Services". The Zurich policy defines covered Legal Services to include, in addition to services rendered as an attorney, those performed in the following additional capacities:
   • Fiduciary, i.e., administrator, conservator, receiver, executor, guardian, trustee or similar fiduciary capacity;
   • Arbitrator or mediator;
   • Title Agent; and
   • Notary Public.
   (See VI.H)
6. Predecessor Firm Coverage. The policy automatically includes "Predecessor Firm" coverage for those entities to which the Named Insured is the majority successor in interest. (See VI.N)
7. Personal Injury Coverage. The policy provides personal injury coverage which is broadly defined to include not only invasion of privacy and defamation, but abuse of process and malicious prosecution as well. (See V.D)
8. Innocent Insured Coverage. The policy provides an important exception to the intentional acts exclusion and reporting requirements for "Innocent Insureds" who did not personally participate or acquiesce to such conduct. (See V.B)
9. Exception to Outside Interests Exclusion. The policy wording allows up to 10% ownership in outside entities as an exception to the standard outside interests exclusion. (See VI.D)
10. Extended Reporting Period ("ERP") Coverage Options. ERP (tail coverage) options for 1, 2 or 3 years as well as for an unlimited time period are calculated at 100%, 150%, 185% and 225% of expiring premium, respectively.
11. Retirement Tail Coverage Options The carrier also offers retirement tail options to attorneys who have been continuously insured with Zurich for at least 3 years as follows:
    • 3-year term at no charge;
    • 6-year terms at 100% of pro-rata expiring premium;
    • unlimited term for 150% of pro-rata expiring premium.
    (See I.V.A) Also, any additional premium charge is waived for attorneys who are retiring to accept a position as a judge sitting on the state or federal bench. (See IV.B)
12. Death/Disability Tail Coverage. tail coverage is provided for individual attorneys who die while the policy is in force free of charge. Also, those who have been insured for at least 3 consecutive years with Zurich and then suffer a total and permanent disability, free tail coverage is provided as well. (See IV.C)
13. Generous Definition of Material Change. Carriers invariably require reporting of material changes in the firm's practice while the policy is in force and reserve the right to charge an additional premium for any such changes. The Zurich policy defines "material change" quite broadly, as either a 50% changed in professional personnel or an entity acquisition. This broad definition significantly lowers the possibility of a mid-term material change which would require reporting and the possibility of an additional premium being assessed. (See VI.I)