An Interview with Kathy Fisher, Vice President of Underwriting

LM: Kathy, what are the most common questions you get from attorneys who are nearing retirement?

Kathy: Many lawyers approaching retirement ask the same big questions: Do I need tail coverage? Can I go part-time and still be covered? What happens to my policy if I sell my practice? How long do I need to keep my malpractice insurance if I’m still licensed but not practicing? These are important questions, and we want to make sure retiring attorneys feel secure and informed as they wind down their careers.

LM: Let’s start with tail coverage. What is it, and when is it necessary?

Kathy: Professional liability policies are claims-made policies, which means that the policy in effect at the time a claim is made and reported determines coverage. Tail coverage refers to an extended reporting endorsement that extends the reporting period for claims.  The endorsement allows a lawyer to report claims that arise after they’ve retired or stopped practicing—concerning legal services that were rendered prior to expiration of the policy.  If you’re fully retiring and canceling your policy, the endorsement is essential to have coverage for claims or lawsuits that may be asserted after you retire.

The good news: for our insureds who have been continuously insured on an active policy with us for at least ten consecutive years—we often offer tail coverage at no cost or a discounted cost. It’s our way of saying thank you and helping ensure peace of mind in retirement.

LM: What if someone transitions to part-time practice before retiring fully—how does that affect coverage?

Kathy: We’re seeing more lawyers phase into retirement by working part-time. Lawyers Mutual has part-time premium discounts which are provided to qualifying lawyers. The important thing is to define what “part-time” looks like in your specific situation. Coverage under the policy will only exist if you are engaged in the part-time private practice of law. 

LM: How does selling a law practice impact malpractice insurance?

Kathy: Selling your practice doesn’t eliminate your liability for the legal services you performed while you owned it. You’ll want to make sure you maintain coverage for your prior acts, either with an extended reporting endorsement or continuation of your policy by the buyer. The buying attorney typically won’t assume your liabilities, so this is something you’ll want to address as part of the sale.

For example, if you want to purchase tail coverage, some retiring lawyers negotiate that cost with the law firm buyer.

LM: If a lawyer keeps their license active but doesn’t practice, should they keep their malpractice policy?

Kathy: That depends on whether you’re still giving legal advice. Even an informal opinion to a friend can trigger a claim if something goes wrong. An extended reporting endorsement will not cover legal services rendered after the policy expired, so if you think there’s any chance that you will do occasional legal work, even pro bono, keep your policy active.

LM: Do you have a final word of advice for lawyers planning their transition to retirement?

Kathy: Don’t wait. Start making your plans.

Reach out to us early. We’re here to answer questions and help tailor coverage to your next chapter, whether that’s part-time work, full retirement, or something else.