From AA&B October 1945
As doctors, surgeons, dentists, druggists and others have been able to obtain professional liability insurance for many years; recently this protection has been made available to lawyers. Lawyers may be sued and held liable for damages because of error or omission or negligent act. In most states now there is available a policy insuring lawyers against damages or loss imposed by law became of such errors or omissions in the performance of their duties.
Clients often have real or imagined grievances against lawyers for handling of cases, approval of titles, neglect, or letting suits go by default. Lawyers need protection against both financial loss and loss of reputation and prestige.
The insurer agrees to pay any damages or loss imposed upon the lawyer, his law firm or his estate because of a negligent act, error or omission of the lawyer, his partner, associate or employee, occurring during the policy period in the performance of professional services, if claim or suit is brought during the policy period or within ten years afterward. The application of coverage when claim or suit is brought within ten years is especially valuable to the insured since the negligent act, error or omission may not come to light for several years after its occurrence.
The policy contains the usual provisions relating to defense, settlement and supplementary payments. These provisions are as important as the direct financial loss coverage. A claim or suit may be brought against the lawyer, which is entirely groundless--and yet, if such a suit is not promptly and vigorously defended, it can cause very harmful publicity and resulting loss of professional standing on the part of the lawyer. The insurer agrees to defend in the name and behalf of the insured any suit alleging negligent act, error or omission and seeking damages, even if such suit is groundless, false or fraudulent. The company has the right to make such investigation and negotiation of any claim or suit as may be considered expedient by the company; however, the company shall not make settlement or compromise any claim or suit without the written consent of the insured.
The company agrees to pay all premiums on bonds to release attachments for an amount not exceeding the applicable limit of liability of the policy, all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish such bonds, all costs taxed against the insured in any such suit, all expenses incurred by the company, all interest accruing after entry of judgment until the company has paid, tendered or deposited in court such part of such judgment as does not exceed the limit of the company's liability thereon. The company agrees to reimburse the insured for all reasonable expenses, other than loss of earnings, incurred at the request of the company. The company agrees to pay the amount incurred under this insuring agreement, except settlements of claims and suits, in addition to the applicable limit of liability of this policy.
Lawyers protective liability insurance does not apply to any dishonest, fraudulent, criminal or malicious act, or to libel, slander, assault or battery; to the ownership, maintenance, use or repair of any property, or the conduct of any business enterprise that is wholly or partly owned, operated or managed by the insured either individually or as executor, administrator, trustee, receiver or in any other fiduciary capacity; to bodily injury to, or sickness, disease or death of any person, or to injury to or destruction of any tangible property, including loss of use.
Dangerous Driving Ahead
At least five big factors are making automobile accidents more of a hazard now in the early postwar. They are:
(1) Your car. Automobiles have had to last during the war, and many old timers are on the roads. Repairs and replacements have had to be left undone in many cases because new parts and materials have not been available. The old, worn-out jalopies are not what they used to be.
(2) Your tires. Tires are still scarce, and retreads or "no treads" are not safe enough for high-speed driving.
(3) The highways. Material and labor have been hard to get during the war, and the highways have not been kept up in best repair. Four years of this condition have allowed many highways to get in pretty bad shape.
(4) Heavier traffic. With the end of gasoline rationing a surge of cars swept out on the highways. For several years drivers have been accustomed to light traffic, but now automobile owners are turning loose their pent-up desire to get out on the road. Heavier traffic means more accidents even when automobiles are in better shape than they are today.
(5) Your mental state. Everyone's natural exuberance at having the whole world conflict-on both fronts --over, with the resulting lifting of restrictions, makes for a release of self-control and even recklessness. Driving since the end of the war and automobile accidents has reflected this tendency.
All types of automobile insurance should be solicited with increased energy now to offset the losses that otherwise would bring big difficulties to many car owners.
