Wrongful Act
Key Takeaway
The triggering event that gives rise to a covered claim under a professional liability policy. For legal malpractice, a wrongful act is typically defined as any actual or alleged error, omission, negligent act, misstatement, or breach of duty committed in the rendering of or failure to render professional legal services for others..
Definition
The triggering event that gives rise to a covered claim under a professional liability policy. For legal malpractice, a wrongful act is typically defined as any actual or alleged error, omission, negligent act, misstatement, or breach of duty committed in the rendering of or failure to render professional legal services for others.
Why This Matters for Law Firms
How claims are handled directly impacts your firm financially and reputationally. Understanding the claims process and related terminology helps law firm leadership make informed decisions when a claim or potential claim arises, and ensures you do not inadvertently jeopardize your coverage by failing to comply with policy requirements.
Example Usage in Context
When a partner receives a demand letter from a former client, the firm's risk manager might reference this: "We need to understand the wrongful act requirements under our policy before taking any action. Let me contact our carrier and broker immediately."
Related terms
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