Representations and Warranties
Key Takeaway
Statements made by the insured in the application that the insurer relies upon in deciding to issue coverage. These include affirmations about claims history, practice areas, firm structure, and risk management practices.
Definition
Statements made by the insured in the application that the insurer relies upon in deciding to issue coverage. These include affirmations about claims history, practice areas, firm structure, and risk management practices. Material misrepresentation can void the policy from inception, leaving the firm with no coverage for any claims during that period.
Why This Matters for Law Firms
Underwriting terms determine what you pay for coverage and what terms you receive. Law firms that understand the underwriting process can present their risk profile more effectively, negotiate better terms, and avoid surprises at renewal. This knowledge is particularly valuable when shopping for new coverage or responding to carrier questions.
Example Usage in Context
A firm preparing for its annual insurance renewal might encounter this in the carrier's proposal: "The underwriter has adjusted our representations and warranties based on our claims history. Let's discuss with our broker whether we can improve this at our next renewal."
Related Q&A
Related terms
Need help understanding your policy?
Get a free coverage review and we'll walk through every key term in your law firm's insurance program.