Fee Dispute Exclusion
Key Takeaway
A common malpractice policy exclusion that eliminates coverage for claims arising from disputes over the attorney's fees or billing practices. While fee disputes themselves are excluded, a fee dispute that evolves into or accompanies a malpractice claim may still trigger coverage for the malpractice component of the claim..
Definition
A common malpractice policy exclusion that eliminates coverage for claims arising from disputes over the attorney's fees or billing practices. While fee disputes themselves are excluded, a fee dispute that evolves into or accompanies a malpractice claim may still trigger coverage for the malpractice component of the claim.
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 fee dispute 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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