The Lawyer’s Professional Liability Policy (the “malpractice policy”) responds to all claims resulting from a real or perceived failure by the attorneys, their firm, or employees of the firm to provide adequate legal services stemming from negligence, errors, omissions, or mistakes of the firm’s legal personnel or anyone whose actions the firm may be held responsible. The policy applies without regard to whether a fee has been charged for the legal services. The malpractice insurer provides a defense to the firm and indemnity payments to plaintiff, if necessary, for “wrongful acts” as they are defined in the malpractice policy. The “wrongful acts” must be related to the practice of law.
The insurer is obligated to defend the claims unless it can establish as “a matter of law” that there is no possible factual basis under any provision of the policy for which the insurer might be obligated to indemnify the insured. Every policy contains several exclusions which, if applicable, may bar coverage. This article addresses the business pursuits exclusions.
