How does law firm insurance handle claims involving multiple attorneys?

Malpractice claims frequently name multiple attorneys within a firm, particularly when a matter involved supervision, collaboration, or handoffs between attorneys. Your firm's malpractice policy covers all named insureds, including the firm entity itself, all partners, associates, and of-counsel attorneys listed on the policy. A single claim naming multiple firm attorneys is treated as one claim against the policy limits, not separate claims with separate limits for each attorney.

The single-claim treatment means that the per-claim limit must cover defense costs and indemnity for all named attorneys combined. If a $1 million claim names three attorneys, the $1 million per-claim limit covers all three, not $1 million each. This is an important consideration when sizing your policy limits, particularly if your firm regularly staffs matters with multiple attorneys.

Conflicts can arise when co-defendant attorneys within the same firm have divergent interests. For example, if one attorney alleges that another attorney at the firm was primarily responsible for the error, or if a supervising partner and associate have different positions on what instructions were given, separate defense counsel may be needed. Most policies allow the carrier to assign separate counsel when a genuine conflict exists, and the cost of both defense teams is covered within the policy limits.

If a claim involves attorneys at different firms, such as when a matter was referred from one firm to another, each firm's separate malpractice policy responds independently. The allocation of liability between firms depends on each attorney's role in the alleged error and the applicable contribution and indemnification rules in the jurisdiction. Joint defense agreements between the firms can coordinate the defense strategy while preserving each firm's separate coverage.