Exclusion
Key Takeaway
A policy provision that eliminates coverage for specific types of claims, acts, or circumstances. Common exclusions in legal malpractice policies include intentional or criminal acts, bodily injury, property damage, fee disputes, and claims arising from business ventures separate from the practice of law..
Definition
A policy provision that eliminates coverage for specific types of claims, acts, or circumstances. Common exclusions in legal malpractice policies include intentional or criminal acts, bodily injury, property damage, fee disputes, and claims arising from business ventures separate from the practice of law.
Why This Matters for Law Firms
This term defines the boundaries of what your insurance will and will not pay for. Law firms that misunderstand coverage terms risk discovering gaps in protection only after a claim has been filed, when it is too late to remedy the situation. Reviewing these terms with your broker before binding coverage is a critical risk management step.
Example Usage in Context
During a coverage review meeting, the firm administrator might note: "Our policy includes a exclusion provision -- let's make sure we understand exactly what that means for our specific practice areas before we sign off on the renewal."
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