Certificates of Insurance IIIFlll iirliiiILawyeirs Mutual'
1 N S U R A N C E C 0 M P A N Y
YERS PROFESSIONAL LIABILITY INSURANCE CREATED B�THE FLORIDA BAR -......
Dear Valued Member,
We would like to extend our personal thanks to you for choosing Florida Lawyers Mutual as your trusted provider
for lawyers' professional liability insurance. Enclosed are your policy documents. Please keep them safe.
Please notify us in writing within thirty(30)days of:
➢ Changes in contact information
➢ Changes in firm name
➢ If an attorney joins the firm (please submit New Lawyer Form,found at flmic.com/add-lawyer)
➢ If an attorney leaves the firm (please include lawyer's name and termination date)
As a mutual company created by and for Florida lawyers, we are always working to create value, ease, and peace
of mind for your law firm. To that end, in addition to the high-quality policy features we have designed to protect
your practice, you will now also have access to all the Ibenefits of mei mlberslhiili�)with Florida Lawyers Mutual.These
include:
➢ Exclusive FREE CLE Library with more than 33 hours of accredited CLE videos streaming 24/7 in high-
definition, including coveted credit types such as Technology, Professionalism, Board Certification, and
more...
➢ Automatic Cyber Liability Endorsement from Tokio Marine NAS, included on your policy at no additional
premium cost
➢ Complimentary Cyber Risk Management Hotline to connect you directly with a cybersecurity expert for
general risk management guidance by email or phone(call 877-574-6406 or email s tt 1 i C gt irm)
➢ A robust Lawyer Well-Being Resource Centerfilled with articles and inspiration for living your best life as a
lawyer — happy, healthy, and balanced (be sure to check out your exclusive Music Playlist for Florida
Lawyer Well-Being on Spotify,Apple Music, or YouTube)
➢ Easy Online Payment Options, including e-Check, credit card, PayPal, Apple Pay, Google Pay, Venmo, and
Pay by Phone
Did you know that Florida Lawyers Mutual declared its first-ever member dividend in Spring 2022?While dividends
are paid at the sole discretion of the Company's Board of Directors,and this year's dividend does not guarantee the
payment or amount of future dividends, it's just one of the ways we have worked to thank and congratulate our
members on their good practices.
Thank you for being a Florida Lawyers Mutual member. We look forward to serving you. Should you have any
questions or need further assistance, please don't hesitate to reach out.
Sincerely,
Your Underwriting Team
. ..:............................
IRorid,aLawyem Maduai 541 E. Mitchell Hammock Road Oviedo, Florida 32765
n IN S U R A, IN c E C 0 M P A, IN Y Phone: 800-633-6458 Fax: 800-781-2010
www.flmic.com
Lawyers Professional Liability Policy
This is a Claims Made and Reported Policy. Please read it carefully.
Declarations
Policy Number: 108405
I! T
Item 1. Named Insured: Oropeza, Stones & Cardenas, PLLC ""°a e
Mailing Address: 221 Simonton Street 4.1.24 ,
Key West, FL 33040 N � ti _ M.-
Item 2. Policy Period: From 02/11/2024 to 02/11/2025 at 12:01 A.M.
Standard Time at Your Address Shown Above
Item 3. Limit of Liability: $2,000,000 Per Claim
$2,000,000 Total Limit
Item 4. Deductible: $10,000 Annual Aggregate
Item 5. Policy Premium: $13,806.00 Annual Premium
$138.06 Florida Insurance Guaranty Association
Emergency Assessment(1°o)
$13,944.06 Total Amount
Item 6. Forms and Endorsements Attached at Policy Issuance:
FLPL-101 (R.10/01/2018) FLPL-20OR (R.06/01/2023) FLPL-103 (R.08/01/2011)
FLPL-110 (R.08/01/2011) FLPL e-JDT" (R.01/01/2016)
The Policy is not valid until signed by Our authorized representative.
January 11, 2024
Date Issued Authorize epresen ative
FLPL-100 (R.08/01/2011) Page 1 of 1
.LglI'lorida lllLawyeors Mutual
I N S U R A, N C E C 0 M P A IN Y
Lawyers Professional Liability Policy
This is a Claims Made and Reported Policy. Please read it carefully.
RETROACTIVE DATE SCHEDULE ENDORSEMENT
Named Insured: Oropeza, Stones & Cardenas, PLLC
Policy Number: 108405 Endorsement Number: 1 Effective Date: 02/11/2024
It is understood and agreed that the Retroactive Date of each lawyer is as shown below:
Name Retroactive Date
Elizabeth M. Kehoe 04/19/2021
Kai A. Murphy 07/05/2021
Gregory S. Oropeza 04/01/2017
All other terms and conditions of the Policy remain unchanged.
January 11, 2024 _
Date Issued Authoriz d Represe tative
FLPL-103(R.08/01/2011) Page 1 of 1
Florida lL
IIN Stu R A, N C E C, 0 M P A Y
Lawyers Professional Liability Policy
This is a Claims Made and Reported Policy. Please read it carefully.
"OF COUNSEL"EXCLUSION ENDORSEMENT
Named Insured: Oropeza, Stones & Cardenas, PLLC
Policy Number: 108405 Endorsement Number: 2 Effective Date: 02/11/2024
In consideration of a reduced premium, it is understood and agreed that the Policy,
and any and all coverages otherwise provided by the Policy, shall not apply to any
Claim made or Suit brought against the Named Insured or any Insured under the Policy
if such Claim or Suit arises out of an act, error or omission, or Personal Injury of an "of
counsel" lawyer or the "of counsel" lawyer's association with the Named Insured.
All other terms and conditions of the Policy remain unchanged.
January 11, 2024ez.l'
Date Issued Authoriz Represe tative
FLPL-110 (R.08/01/2011) Page 1 of 1
uumuuuoi
MM1 g FloridaMutual
111 V NSURANC' IE COMPANY
LAWYERS PROFESSIONAL LIABILITY AGREEMENT
IMPORTANT NOTICE
THIS IS A CLAIMS MADE AND REPORTED INSURANCE POLICY.
PLEASE READ CAREFULLY.
Please call 800.633.6458 to present inquiries or obtain
information about coverage and to receive assistance
in resolving complaints.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 1 of 13
TABLE OF CONTENTS
Section Page
I. DEFINITIONS 3
II. INSURINGAGREEMENT
A. Coverage of Claims and Incidents 4
B. Notices of Claims, Incidents and Suits as a Condition of Coverage 5
C. Defense and Settlement 5
D. Trial Attendance Coverage 5
E. Disciplinary Proceeding Coverage 5
III. INSUREDS
A. Who is an Insured 6
B. Death of Insured 6
IV. LI M ITS OF LIABI LITY AN D DEDUCTI BLE
A. Limits of Liability 7
B. Supplemental Claims Expense Coverage 7
C. Deductible 7
D. No Deductible for Pro Bono Activities 7
E. Multiple Insureds,Claims,Claimants, Policies 7
F. Reimbursement to Us 7
V. EXCLUSIONS
A. No Coverage or Benefits with Respect To 8
B. Waiver of Exclusion or Breach of Conditions 8
VI. EXTENDED CLAIMS REPORTING PERIOD
A. Extended Claims Reporting Periods 9
B. Extended Claims Reporting Period for Estate of Certain Insureds 9
C. Extended Claims Reporting Period for Disability of Certain Insureds 9
D. Extended Claims Reporting Period for Retirement of Certain Insureds 10
VII. OTHER CONDITIONS AND OBLIGATIONS
A. Insured's Cooperation 10
B. Subrogation 11
C. Bankruptcy/Insolvency 11
D. Actions Against Company 11
E. Policy Territory 11
F. Firm Changes 11
G. Assignment 11
H. Conforming to Law 11
I. Other Insurance 11
J. Cancellation or Non-Renewal 12
K. Assistance in Risk Management and Audit 12
L. Representations and Reliance 12
M.Changes in Policy Form 12
N. Notices 12
Vill. MUTUAL COMPANY POLICY PROVISIONS
A. Member of the Company 13
B. Voting 13
C. Non-Assessable 13
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 2 of 13
I. DEFINITIONS
Defined words appear in bold type and apply to any part of the Policy where they appear. The words We, Us, Our, or
Company mean Florida Lawyers Mutual Insurance Company.Other defined words are:
1. "Claim"means a written demand received by an Insured for money or services including the service of Suit.
2. "Claimant" means the person, organization or entity, or their legal representatives, other than the Insured, who
makes a Claim.
3. "Claims Expense" means: (a) fees charged by any attorney or arbitrator designated by Us; (b) all other fees, costs
and expenses resulting from the investigation, adjustment, defense or appeal of a Claim, arbitration,Suit or other
proceeding, if incurred by Us or by the Insured with Our written consent. Claims Expense does not include salary
or expense of Our employees.
4. "Damages" means a monetary judgment or settlement which the Insured is legally obligated to pay for any Claim
to which this insurance applies.
S. "Disciplinary Proceeding" means a complaint or inquiry to or by The Florida Bar,or a proceeding arising from or
in response to a complaint or inquiry to or by The Florida Bar,or a disciplinary action,case or matter, under the
Rules Regulating The Florida Bar, involving an allegation that an Insured has violated the Rules Regulating The
Florida Bar.
6. "Extended Claims Reporting Period" means a specified time period after the Policy Period to report covered
Claims or Incidents.
7. "Fines, Sanctions or Penalties" means punitive damages, multiple damages or other disciplinary related
assessments, orders or judgments (including costs and attorneys' fees) imposed or entered by a court or
disciplinary authority against an Insured.
8. "Incident" means any circumstance, act, error or omission which reasonably could be expected to be the basis of
or lead to a Claim or Suit covered by the Policy, including any notice, advice, threat, whether written or verbal,
that any person, business entity or organization intends to hold an Insured responsible for any alleged error or
omission.
9. "Insured" means any person or organization qualifying as an Insured herein under Section III. A. WHO IS AN
INSURED.
10. "Named Insured" means the individual, firm or professional legal business entity named on the Declarations as
Named Insured.
11. "Personal Injury"means injury arising out of the performance of Professional Services resulting from:
a. False arrest,detention or imprisonment;
b. Wrongful entry or eviction or other invasion of the right of private occupancy;
C. Malicious prosecution based on legal malice inferred from the absence of probable cause and not
actual malice;or
d. The publication of defamatory material,or a writing or saying in violation of an individual's right
to privacy; provided, however, defamation or invasion of privacy made with ill will, malice, or
intent to cause injury or harm by or with the consent of the Insured shall not be Personal Injury.
12. "Policy" means collectively this Agreement, the Declarations, and all endorsements, the application and
supplements thereto.
13. "Policy Period" means the time between the first date shown in the Declarations and the earlier of termination,
expiration or cancellation of the Policy. This does not include any Extended Claims Reporting Period.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 3 of 13
14. "Predecessor Firm" means any lawyer, law firm or professional legal business entity engaged in the practice of law
whose financial assets and liabilities the Named Insured is the majority successor in interest.
15. "Professional Services" means services performed by an Insured on behalf of the Named Insured: (a) in a lawyer-
client relationship; (b) as a notary public; (c) as a personal representative, conservator, receiver, guardian, or
trustee; (d)as an arbitrator,mediator, referee,special master,or hearing officer; (e)as a title agent.
"Professional Services" does not mean or include any matters pertaining or related to an Insured's charges for
services or expenses.
16. "Retroactive Date" means the date, as shown in the Retroactive Date Schedule Endorsement of the Policy, on or
after which any act, error or omission in Professional Services or Personal Injury must have occurred in order for
Claims arising therefrom to be covered under the Policy.
17. "Suit" means a court action brought against an Insured for money or services,or an arbitration proceeding seeking
money damages or services to which the Insured is required to submit or to which the Insured has submitted with
Our consent.
II. INSURING AGREEMENT
In consideration of the Named Insured's payment, when due, of the premium and the deductible as stated in the
Declarations, and in reliance upon the information provided in the application and the performance of the terms,
provisions and conditions of the Policy by the Insured,the Company agrees as follows:
A. COVERAGE OF CLAIMS AND INCIDENTS
Subject to the Limit of Liability shown in the Declarations(Limit of Liability) and all of the terms, conditions and provisions
of this Agreement,We will pay all sums that an Insured must legally pay to compensate others for loss resulting from any
act, error or omission in Professional Services provided or that should have been provided, or for Personal Injury arising
from the Professional Services of an Insured,provided that:
1. Reported Claims:We will cover Claims first made during the Policy Period,if:
a. The Claim is based on an Incident that occurred on or after the Retroactive Date of the involved Insured;
and
b. The Claim is made against an Insured during the Policy Period;and
C. We receive written Notice of the Claim in compliance with Section II. B. of this Agreement during the
Policy Period;and
d. No Insured had knowledge of the Incident prior to the Policy Period.
2. Reported Incidents: We will cover Claims first made against an Insured after the Policy Period,if:
a. During the Policy Period,the Insured first becomes aware that an Incident occurred;and
b. Such Incident occurred on or after the Retroactive Date of the involved Insured;and
C. A written Notice of the Incident,complying with Section 11. B.of this Agreement, is delivered to Us during
the Policy Period;and
d. No Insured had knowledge of the Incident prior to the Policy Period.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 4 of 13
B. NOTICES OF CLAIMS,INCIDENTS AND SUITS AS A CONDITION OF COVERAGE
As a condition of coverage, if during the Policy Period an Insured first becomes aware of an Incident, Claim or Suit,the
Insured must,within the Policy Period:
1. Deliver to Us immediately, written Notice of any Incident, Claim or Suit and provide to Us the fullest information
available or obtainable,including:
a. The date or dates of the alleged Incident or Claim;
b. A summary of the circumstances giving rise to the Incident or Claim and the injury or damage that has or
may result;and
C. The circumstances by which you first became aware of the Incident or Claim.
2. Immediately deliver to Us all Suit papers received by you or your representative(s).
Any Claim subsequently made against the Insured arising out of a reported Incident will be deemed,for the purpose of this
insurance, to have been made during the Policy Period. If an Insured fails to report an Incident to Us as required by this
Agreement,any Claim arising out of the unreported Incident will not be covered by the Policy.
C. DEFENSE AND SETTLEMENT
1. We will defend any covered Claim or Suit brought against the Insured,even if the Claim or Suit is groundless,false
or fraudulent.We will defend any non-covered Claim or Suit when such Claim or Suit is filed in conjunction with
any covered Claim or Suit arising out of the same act,error or omission until the covered Claim or Suit is resolved
by settlement,dismissal or final judgment.
2. We have the right to investigate, retain defense counsel and settle any Claim or Suit. We will not settle a Claim or
Suit without consulting the Insured,but the Insured's consent to settle will not be required.
3. We will pay all costs of defending the Claim or Suit that do not exceed the applicable Limit of Liability.We will not
defend a non-covered Claim or Suit except as set forth in paragraph 1. above.We will not defend or pay any Claim
or Suit after the Limit of Liability has been exhausted in paying judgments, settlements, or Claims Expense.We will
not defend or pay a Claim or Suit after We have deposited the applicable Limits of Liability of the Policy in a court
of competent jurisdiction. If the Limits of Liability have been exhausted before a pending Claim or Suit has been
settled,We will withdraw from defending the Claim or Suit and tender the defense to the Insured.
D. TRIAL ATTENDANCE COVERAGE
We shall pay the Insured a loss of earnings allowance of$250 for each half-day subject to a maximum of$500 per day when
the Insured attends a trial at Our request. This allowance shall not exceed$5,000 total per Policy Period.
The Policy deductible shall not apply to any payments under this provision. Further, any payments made under this
provision will not reduce the Limit of Liability provided by the Policy.
E. DISCIPLINARY PROCEEDING COVERAGE
We shall pay up to $10,000 for reasonable fees and costs of legal services charged by a lawyer selected by the Company to
defend an Insured as a result of a Disciplinary Proceeding based on allegations of violation of the Rules Regulating The
Florida Bar in performing Professional Services on or after the Retroactive Date of the Insured.Such Disciplinary Proceeding
must be first made against an Insured during the Policy Period and reported in writing to Us during the Policy Period.
This provision does not provide coverage to an Insured for payment of any costs taxed against an Insured or any restitution
sums or other monetary awards of any other kind or description that result from the institution or disposition of a
Disciplinary Proceeding.
The Policy deductible shall not apply to any payments under this provision. Any payments made under this provision will
not reduce the Limit of Liability as provided by the Policy.
The maximum amount payable under the Policy for Disciplinary Proceedings shall not exceed $10,000 per Policy Period
regardless of how many Disciplinary Proceedings occur and are reported to Us during the Policy Period.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 5 of 13
III. INSUREDS
A. WHO IS AN INSURED
Each of the following is an Insured to the extent set forth below:
1. The Named Insured as identified in the Declarations.
a. If the Named Insured is an individual,then only with respect to acts,errors or omissions in Professional
Services in the law practice of that individual.
b. If the Named Insured is a professional legal business entity, then any lawyer, partner, officer, director,
shareholder, or member of the Named Insured, but only with respect to acts, errors or omissions in
Professional Services in the law practice of the Named Insured or Predecessor Firm.
2. Any non-lawyer employee of the Named Insured, but only with respect to acts,errors or omissions in Professional
Services in the law practice of the Named Insured.
3. Any lawyer serving as "of counsel" to the Named Insured but only with respect to acts, errors or omissions in
Professional Services in the law practice of the Named Insured.
4. Any lawyer who was a partner, officer, director, shareholder, member or employee of or "of counsel" to the
Named Insured or Predecessor Firm at the time the acts,errors or omissions on which liability is asserted occurred
but only with respect to acts, errors or omissions in Professional Services in the law practice of the Named Insured
or Predecessor Firm as a partner, officer, director, shareholder, member or employee of or "of counsel" to the
Named Insured or Predecessor Firm.
No coverage is provided under the Policy for any partner,officer,director,shareholder,member,employee or"of counsel"
for acts,errors or omissions occurring before joining the Named Insured,unless coverage for prior Incidents is purchased
and the appropriate Retroactive Date is shown.
The Named Insured will be deemed the agent of all Insureds in regard to all matters relating to the Policy.
B. DEATH OF INSURED
If a lawyer who is an Insured dies during the Policy Period,the following provisions apply:
1. The personal representative of the estate of a deceased lawyer or the person who has temporary custody of the
deceased lawyer's business affairs is not an Insured and does not have any rights under the Policy except as
specifically stated in this DEATH OF INSURED provision.
2. We will accept actions of the personal representative of the estate of a deceased lawyer or a person who has
temporary custody of the deceased lawyer's business affairs to the extent necessary to fulfill the duties or
obligations of the Insured under the Policy.
3. The personal representative of the estate of a deceased lawyer or a person who has temporary custody of the
deceased lawyer's business affairs may exercise the right of an Insured, subject to the terms and limitations of the
Policy,to obtain an Extended Claims Reporting Period endorsement.
4. If the Named Insured identified in the Declarations is an individual or a legal business entity having only one
director, officer, shareholder or owner, We will not renew the Policy after the death of such individual, sole
shareholder,officer,director or sole owner.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 6 of 13
IV. LIMITS OF LIABILITY AND DEDUCTIBLE
A. LIMITS OF LIABILITY
Regardless of the number of persons covered by the Policy,Claims made or Suits brought,the most We will pay is:
1. For each Claim and its related Claims Expense first made against an Insured and reported to the Company during
the Policy Period, including any Extended Claims Reporting Period, the amount stated in the Declarations under
Limit of Liability as"per claim".
2. For all Claims and all related Claims Expenses first made against an Insured and reported to the Company during
the Policy Period, including any Extended Claims Reporting Period, the amount stated in the Declarations under
Limit of Liability as"total limit".
B. SUPPLEMENTAL CLAIMS EXPENSE COVERAGE
The Policy includes supplemental Claims Expense coverage with an aggregate limit equal to 25%of the "per claim" Limit of
Liability stated in the Declarations, not to exceed$1,000,000 for the Policy Period, including any Extended Claims Reporting
Period. This supplemental Claims Expense coverage will be used to pay Claims Expense before the available Limit of
Liability is used to pay Claims Expense.
C. DEDUCTIBLE
The annual aggregate deductible amount shall only be applied to Damages. Regardless of the number of Claims first made
during the Policy Period and any Extended Claims Reporting Period, the total payable by the Insured shall not exceed the
annual aggregate deductible amount as stated in the Declarations. The Limit of Liability will apply in excess of the
deductible. We will pay covered Claims over the deductible, up to the unused Limit of Liability. If the Company has paid any
amounts within the applicable deductible,the Insured agrees to reimburse Us the deductible amount within thirty(30) days
after We notify the Named Insured of the amount due. All Insureds are jointly and severally liable for all deductible
payments due the Company.The Company has the right to recover from the Insured,any fees and/or costs incurred by the
Company in collecting the deductible.
D. NO DEDUCTIBLE FOR PRO BONO ACTIVITIES
The deductible will not apply to any Claim arising from any act, error or omission by an Insured for gratuitous legal services
provided for a client who is referred to any Insured by a legal services office qualified for funding by the Federal Legal
Services Corporation,or sponsored by a voluntary bar association recognized by The Florida Bar.
E. MULTIPLE INSUREDS,CLAIMS,CLAIMANTS,POLICIES
If the Policy issued by Us provides coverage for multiple Insureds as defined herein, the inclusion herein of more than one
Insured or the making of Claims or the bringing of Suits by more than one person or organization will not increase Our Limit
of Liability.Two or more Claims arising out of a single act, error or omission in Professional Services or Personal Injury or a
series of related acts, errors or omissions in Professional Services or Personal Injuries shall be treated as a single Claim.All
such Claims, whenever made, shall be considered first made at the time the earliest Claim arising out of such act, error or
omission in Professional Services or Personal Injury or related acts, errors or omissions in Professional Services or Personal
Injuries was first made.
If any Claim is made against an Insured who qualifies for coverage as an Insured under more than one policy issued by Us,
the maximum We will pay shall not exceed the highest Limit of Liability under any one policy; and, payments under the
Policy will be a pro rata amount based upon the unused Limit of Liability of the Policy and the unused Limits of Liability
provided by all policies.
F. REIMBURSEMENTTO US
If We pay any amount for settlements of Claims that exceed the Limit of Liability (other than the supplemental Claims
Expense coverage provided for in Section IV. B.); or if We pay any amount that is within the deductible; or if We pay any
amount for which We have no liability under the Policy; the Insured must reimburse Us such amounts within thirty (30)
days after We notify the Named Insured of the amount due.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 7 of 13
V. EXCLUSIONS
A. THE POLICY DOES NOT AFFORD ANY COVERAGE OR BENEFITS WITH RESPECT TO:
1. Any Claim arising out of a criminal,dishonest,intentional,malicious or fraudulent act,error or omission committed
by an Insured.
2. Any Claim seeking Fines,Sanctions or Penalties.
3. Any Claim made against any business enterprise not named in the Declarations:
a. Owned in whole or in part by an Insured;or
b. Which is controlled, operated or managed in whole or in part by an Insured, individually,or in a fiduciary
capacity;including the ownership,maintenance or use of any property.
4. Any Claim arising out of an Insured's non-professional services,or capacity as:
a. An officer,director, committee member, advisory board member, partner,trustee, or employee on behalf
of or in the business of a charitable organization, pension, welfare, profit sharing, mutual or investment
fund or trust, or business enterprise of any other description that is not expressly named in the
Declarations.
b. A public official or employee of a governmental body,subdivision or agency.
C. A fiduciary under the Employee Retirement Income Security Act of 1974 and its amendments or any
regulation or order issued relating to that Act except if an Insured is deemed to be a fiduciary solely by
reason of legal advice given with respect to any employee benefit plan.
S. Any Claim arising out of an act,error or omission by an Insured in rendering investment advice.
6. Any Claim for bodily injury, sickness, disease or death of any person, or injury to, or destruction of any tangible
property or loss of use of that property.
7. Any Claim arising out of any allegation(s)that an Insured has engaged in wrongful or illegal action as an employer,
including without limitation allegations of wrongful termination, employment discrimination, sexual harassment,
wage or other workplace violations.
8. Any Claim arising solely from an act, error or omission by a lawyer with whom an Insured shares office space or
common facilities,if that lawyer is not also an Insured under the Policy.
9. Any Claim arising out of Professional Services by an Insured pertaining to the collection or enforcement of any
debt,obligation or other property owned, in whole or in part, by an Insured.
10. Any Claim arising out of the liability of others which the Insured assumes under any contract or agreement.
B. WAIVER OF EXCLUSION OR BREACH OF CONDITIONS
Whenever coverage under the Policy would be excluded,suspended or lost because of:
1. Exclusion 1 under Section V. A. of the Policy, We will continue coverage otherwise provided by the Policy for all
other Insureds who were neither involved in nor knew of the criminal, dishonest, intentional, malicious or
fraudulent act, error or omission, provided any Insured claiming entitlement to this waiver immediately delivers
written notice to Us of such criminal,dishonest,intentional,malicious or fraudulent act,error or omission;or
2. Failure to comply with Section II. B.of this Agreement,We will continue coverage otherwise provided by the Policy
for all other Insureds who were neither involved in nor knew of the act, error or omission provided any Insured
claiming entitlement to this waiver immediately delivers written notice to Us of such act,error or omission.
Our obligation to pay, in the event of a waiver, shall only be in excess of the deductible and in excess of the full extent of
any assets held by the Named Insured belonging to the involved Insured who is not a beneficiary to the waiver.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 8 of 13
VI. EXTENDED CLAIMS REPORTING PERIOD
A. EXTENDED CLAIMS REPORTING PERIODS
Insureds shall have the option to extend the time for reporting Claims or Incidents arising from an act, error or omission in
Professional Services or Personal Injury which occurred on or after the Retroactive Date and prior to the end of the Policy
Period,which are first made and reported to the Company during the Extended Claims Reporting Period.
Purchase of an Extended Claims Reporting Period Endorsement is conditioned upon:
1. Prior to the termination, cancellation or non-renewal of this coverage, the Named Insured has complied with all
the terms and conditions of the Policy including the payment of all premiums and/or deductibles when due;and
2. The Named Insured's or the Insured's written request for the endorsement and delivery to FLMIC payment of the
appropriate premium within thirty(30)days after termination of coverage;and
3. The Insured's license to practice law in Florida has not been suspended or revoked and investigative or disciplinary
proceedings which could result in suspension or disbarment have not been instituted by The Florida Bar.
The additional premium and duration of the Extended Claims Reporting Period will be determined under Our rules and
rates in effect on the commencement date of the Extended Claims Reporting Period.
B. EXTENDED CLAIMS REPORTING PERIOD FOR ESTATE OF CERTAIN INSUREDS
If an Insured dies during the Policy Period,the Estate of the Insured shall be provided an Extended Claims Reporting Period
of twenty-four(24)months duration,provided that:
1. Prior to the termination, cancellation or non-renewal of this coverage, the Named Insured has complied with all
the terms and conditions of the Policy,including the payment of all premiums and/or deductibles when due;and
2. The Insured's right to practice law in Florida had not been suspended or revoked and investigative or disciplinary
proceedings which could result in suspension or disbarment have not been instituted by The Florida Bar;and
3. The Insured had been continuously covered by Us for at least five (5) consecutive years immediately prior to the
death of the Insured;and
4. We are furnished with evidence satisfactory to Us of the date of death of the Insured;and
S. We receive a written request for an Extended Claims Reporting Period endorsement under this provision within
sixty(60)days from the expiration of the Policy.
The Extended Claims Reporting Period Endorsement issued under this provision will extend the time for reporting Claims
or Incidents which arise from an act, error or omission in Professional Services or Personal Injury which occurred on or
after the Retroactive Date and prior to the end of the Policy Period, which are first made and reported to the Company
during the Extended Claims Reporting Period.
An Extended Claims Reporting Period added under this provision does not extend the time period in which to exercise the
option to purchase an Extended Claims Reporting Period of longer duration.
C. EXTENDED CLAIMS REPORTING PERIOD FOR DISABILITY OF CERTAIN INSUREDS
If an Insured becomes totally and permanently disabled and unable to practice law during the Policy Period, the Insured
shall be provided an Extended Claims Reporting Period of twenty-four(24)months duration,provided that:
1. Prior to the termination, cancellation or non-renewal of this coverage, the Named Insured has complied with all
the terms and conditions of the Policy including the payment of all premiums and/or deductibles when due;and
2. The Insured's right to practice law in Florida had not been suspended or revoked and investigative or disciplinary
proceedings which could result in suspension or disbarment have not been instituted by The Florida Bar;and
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 9 of 13
3. The Insured had been continuously covered by Us for at least five (5) consecutive years immediately prior to the
disability of the Insured;and
4. Within sixty(60)days from the expiration of the Policy,We are furnished with evidence satisfactory to Us(a) that
the Insured is and became totally and permanently disabled and unable to practice law during the Policy Period,
and (b)that the Insured has resigned from The Florida Bar or has been placed on inactive status by The Florida Bar;
and
S. We receive a written request for an Extended Claims Reporting Period endorsement under this provision within
sixty(60)days from the expiration of the Policy.
The Extended Claims Reporting Period Endorsement issued under this provision will extend the time for reporting Claims
or Incidents which arise from an act, error or omission in Professional Services or Personal Injury which occurred on or
after the Retroactive Date and prior to the end of the Policy Period, which are first made and reported to the Company
during the Extended Claims Reporting Period.
An Extended Claims Reporting Period added under this provision does not extend the time period in which to exercise the
option to purchase an Extended Claims Reporting Period of longer duration.
D. EXTENDED CLAIMS REPORTING PERIOD FOR RETIREMENT OF CERTAIN INSUREDS
If an Insured retires from the practice of law, meaning that he or she permanently and totally ceases the practice of law
during the Policy Period, the Insured shall be provided an Extended Claims Reporting Period of twenty-four (24) months
duration,provided that:
1. Prior to the termination, cancellation or non-renewal of this coverage, the Named Insured has complied with all
the terms and conditions of the Policy including the payment of all premiums and/or deductibles when due;and
2. The Insured's right to practice law in Florida had not been suspended or revoked and investigative or disciplinary
proceedings which could result in suspension or disbarment have not been instituted by The Florida Bar;and
3. The Insured had been continuously covered by Us for at least five (5) consecutive years immediately prior to the
retirement of the Insured;and
4. Within sixty (60) days from expiration of the Policy, We are furnished with evidence satisfactory to Us that the
Insured has totally retired from the practice of law;and
S. We receive a written request for an Extended Claims Reporting Period endorsement under this provision within
sixty(60)days from expiration of the Policy.
The Extended Claims Reporting Period Endorsement issued under this provision will extend the time for reporting Claims
or Incidents which arise from an act, error or omission in Professional Services or Personal Injury which occurred on or
after the Retroactive Date and prior to the end of the Policy Period, which are first made and reported to the Company
during the Extended Claims Reporting Period.
An Extended Claims Reporting Period added under this provision does not extend the time period in which to exercise the
option to purchase an Extended Claims Reporting Period of longer duration.
VII. OTHER CONDITIONS AND OBLIGATIONS
A. I NSURED'S COOPERATION
If an Insured is sued or a Claim is made against the Insured, the Insured must cooperate and assist Us and upon Our
request assist Us in making settlements, in the conduct of litigation, and in enforcing any right of contribution or indemnity
against any person or organization, other than an employee of the Insured who may be liable to the Insured. The Insured
shall attend hearings and trials and assist Us in obtaining and giving evidence. An Insured may not, except at the Insured's
own expense, make any offer or payment, assume any obligation or incur any expenses unless otherwise permitted in the
Policy.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 10 of 13
B. SUBROGATION
If We make any payment, We are entitled to any rights the Insured has to recover what was paid. Any Insured for whom
We make payment must transfer to Us their rights of recovery against any other person or organization. Any amounts so
recovered shall be allocated as follows: Any recovery shall first be used to pay any loss and expense payments by the
Insured in excess of any deductible(s); second, to repayment of the Insured's deductible; third, for the repayment of
expenses incurred toward subrogation; fourth, to any loss and expense payments by any excess carrier on behalf of the
Insured; and last, to any loss and expense payments by the Company on behalf of the Insured. The Insured must do
everything necessary to secure these rights and must do nothing that would jeopardize them.
We have the right to subrogate against an Insured only if the Claim was brought about, contributed to or caused by an
intentional,dishonest,fraudulent,criminal or intentional malicious act or omission of that Insured.
C. BANKRUPTCY/INSOLVENCY
Our obligations to the Insured remain,even if the Insured becomes bankrupt or insolvent.
D. ACTIONS AGAINSTTHE COMPANY
No action shall be filed against Us unless,as a condition precedent:
1. There has been full compliance with all terms of the Policy;and
2. The Insured's obligation to pay has been determined by a final judgment or by a written settlement agreement
among the Insured,the Claimant and Us.
Any person or entity who has secured such a judgment or written settlement agreement shall thereafter be entitled to
recover under the Policy to the extent of the available Limits of Liability afforded, and, if court action is deemed necessary
to enforce these rights,such action shall be limited to the courts of the State of Florida.
E. POLICYTERRITORY
The Policy provides coverage for Professional Services performed anywhere in the world provided the Claim is made and
Suit is brought in the United States of America,its territories or possessions,or Canada.
F. FIRM CHANGES
If any of the Named Insured's lawyers, partners, officers, directors, or members change during the Policy Period, even if it
results in changes in the name or business style of the firm,We will continue to provide coverage under the Policy provided
that the Named Insured reports the changes to Us promptly.The Named Insured agrees to deliver to Us written notice of
any lawyers joining or leaving the firm within thirty (30) days of such event, and to pay any additional premium which may
be due.
G. ASSIGNMENT
Neither the Named Insured nor any Insured can assign any rights, duties or obligations under the Policy to any other
person,organization or entity.
H. CONFORMING TO LAW
If any part of the Policy is in conflict with the statutes of the State of Florida, those provisions in conflict will automatically
change to conform to the law.
I. OTHERINSURANCE
This insurance is excess over any other insurance, regardless of whether such other insurance is to be primary, pro rata,
contributory,excess,contingent or otherwise. If other insurance applies,the Policy applies only in the amount by which the
applicable Limit of Liability of the Policy exceeds the sum of the applicable liability limits of the other insurance. This
provision will not apply to other insurance written to provide specific insurance in excess of the Policy.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 11 of 13
J. CANCELLATION OR NON-RENEWAL
Either the Named Insured or the Company can cancel or not renew the Policy by giving written notice to the other. If the
Named Insured cancels,the Named Insured is required to deliver to Us written notice stating the date the cancellation is to
be effective (backdating not permitted). Ninety percent (90%) of the unearned premium will be refunded to the Named
Insured.
If We cancel the Policy during the first ninety (90) days it is in force, a written notice of cancellation will be mailed to the
Named Insured at the address shown in the Declarations or the last address reported to Us in writing.The notice will state
when, not less than twenty (20)days later,the cancellation will be effective. In addition,the notice will state the reason for
cancellation.The twenty (20) day notice will not be required if the Policy is being cancelled for a material misstatement or
misrepresentation, or where there is a failure to comply with Our underwriting requirements.The earned premium will be
calculated pro rata if We cancel the Policy.
If We cancel the Policy after the first ninety (90) days it is in force, a written notice of cancellation will be mailed to the
Named Insured at the address shown in the Declarations or the last address reported to Us in writing.The notice will state
when, not less than forty-five (45) days later, the cancellation will be effective and will state as the reason for cancellation
one of the following: material misstatement, failure to comply with Our underwriting requirements established within
ninety (90) days of the first date of coverage, a substantial change in the risk covered, and/or cancellation for all Insureds in
the same class.The earned premium will be calculated pro rata if We cancel the Policy.
Notwithstanding anything above, if We cancel the Policy because the Named Insured did not pay the premium when due, a
written notice of cancellation stating the reason for cancellation will be mailed to the Named Insured at the address shown
in the Declarations or the last address reported to Us in writing.The notice will state when, not less than ten (10)days later,
the cancellation will be effective.
If We do not renew the Policy, We will mail to the Named Insured, at the address shown in the Declarations or the last
address reported to Us in writing, not less than forty-five (45) days before the end of the Policy,written notice that We will
not renew.The notice will state the reason for non-renewal.The mailing of the notice will be sufficient proof of notice.The
date and hour that coverage will end will be the end of the Policy Period. Delivery of written notice, either by the Named
Insured or Us will be equal to mailing.
K. ASSISTANCE IN RISK MANAGEMENT AND AUDIT
Except where such action would violate client confidentiality or the Rules of Professional Conduct,the Insured will cooperate
with Us by allowing Us to examine the Insured's operations, including interviewing the Insured's employees to identify and
address risk management and underwriting issues.
L. REPRESENTATIONS AND RELIANCE
By accepting the Policy,the Named Insured agrees that the statements and representations in the application for the Policy
are true and material. The Policy is issued in reliance upon the truth, accuracy and completeness of the Named Insured's
statements.
M. CHANGES IN POLICY FORM
If We adopt any revision that would broaden coverage under the Policy without additional premium at any time during the
Policy Period,the broadened coverage will immediately apply to the Policy except that it will not apply to Claims that were
first made against the Insured prior to the effective date of such revision.
N. NOTICES
Except as otherwise specifically stated in the Policy, all notices or communications required or contemplated by the Policy
will be delivered in writing:
If to Us: Florida Lawyers Mutual Insurance Company
541 E. Mitchell Hammock Road
Oviedo, Florida 32765
If to Insured: At the address stated in the Declarations or the last address reported to Us in writing.
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 12 of 13
VIII. MUTUAL COMPANY POLICY PROVISIONS
A. MEMBER OF THE COMPANY
The Named Insured,as the policyholder,is a member of the Company so long as the Policy is in force. Upon cancellation or
non-renewal of the Policy,the Named Insured ceases to be a member of the Company.
B. VOTING
The Named Insured,as the policyholder,has the right to vote,either in person or by proxy,at the Company meetings under
the terms of Our Bylaws and Articles of Incorporation.
C. NON-ASSESSABLE
The Policy is not assessable.The Insured is not liable for any amount other than the payment of the annual premium for the
Policy,any applicable deductible,or reimbursement to the Company for sums in excess of the applicable Limit of Liability.
FLORIDA LAWYERS MUTUAL INSURANCE COMPANY
541 EAST MITCHELL HAMMOCK ROAD
OVIEDO, FLORIDA 32765
PHONE 800.633.6458 FAX 800.781.2010
FLMIC.COM
FLPL-101 (R.10/01/2018) Florida Lawyers Mutual Insurance Company Page 13 of 13
FLPL a-JDTM INSURANCE ENDORSEMENT
(Claims-Made and Reported Coverage)
Effective date: 2/11/2024
This Endorsement ("Endorsement") amends your Policy to provide e-JD insurance on a Claims-Made and
Reported basis.Various provisions in this Endorsement restrict coverage. Read the entire Endorsement carefully
to determine your rights and duties and what is and is not covered. The terms, conditions, exclusions, and limits
of insurance set forth in this Endorsement apply only to the coverage provided by this Endorsement.
All words and phrases in this Endorsement that appear in bold print have the meanings set forth in Section V of
this Endorsement. To the extent any words or phrases used in this Endorsement are defined elsewhere in the
Policy, such definitions provided elsewhere do not apply to give meaning to the words or phrases used in this
Endorsement.
The limits of liability for the coverage provided under this Endorsement are specified in Section IV of this
Endorsement. Such limits of liability are in addition, to, and will not exhaust, the limits of insurance provided
elsewhere under the Policy. Defense costs paid under this Endorsement will erode, and are included within, the
e-JD limits of liability.
SECTION I- COVERAGE AGREEMENTS
In consideration of the premium paid and subject to all terms, conditions, definitions, exclusions and other
provisions of this Endorsement, the Company agrees as follows:
A. MULTIMEDIA LIABILITY COVERAGE
Subject to the limits of liability specified in Section IV of this Endorsement, the Company will pay:
(1) Damages which an insured becomes legally obligated to pay; and
(2) Defense costs,
resulting from a claim for an actual or alleged multimedia peril(s),provided that:
(1) Such claim is first made against the insured during the endorsement period;
(2) The insured reports such claim in writing to the Company no later than sixty(60) days after the
claim is first made against the insured; and
(3) The multimedia peril(s)takes place or first commences on or after the retroactive date.
B. SECURITY AND PRIVACY LIABILITY COVERAGE
Subject to the limits of liability specified in Section IV of this Endorsement, the Company will pay:
(1) Damages which an insured becomes legally obligated to pay; and
(2) Defense costs,
resulting from a claim for an actual or alleged security and privacy wrongful act,provided that:
(1) Such claim is first made against the insured during the endorsement period;
(2) The insured reports such claim in writing to the Company no later than sixty(60) days after the
claim is first made against the insured; and
FLPL e-JDTM (R.01/01/2024) Florida Lawyers Mutual Insurance Company ❑ Pagel of 22
(3) The security and privacy wrongful act takes place or first commences on or after the
retroactive date.
C. PRIVACY REGULATORY DEFENSE AND PENALTIES COVERAGE
Subject to the limits of liability specified in Section IV of this Endorsement,the Company will pay:
(1) Regulatory fines and penalties and/or any regulatory compensatory award which an
insured becomes legally obligated to pay; and
(2) Defense costs,
directly resulting from a claim for an actual or alleged security breach or privacy breach,provided that:
(1) Such claim is first made against the insured during the endorsement period;
(2) The insured reports such claim in writing to the Company no later than sixty(60)days after the
claim is first made against the insured; and
(3) The security breach or privacy breach takes place or first commences on or after the
retroactive date.
D. PRIVACY BREACH RESPONSE COSTS, NOTIFICATION EXPENSES, AND CUSTOMER
SUPPORT AND CREDIT MONITORING EXPENSES COVERAGE
Subject to the limits of liability specified in Section IV of this Endorsement, the Company will pay
reasonable privacy breach response costs, notification expenses,and/or customer support and credit
monitoring expenses which you incur during the endorsement period as a direct result of an adverse
media report, security breach or privacy breach,provided that:
(1) The adverse media report, security breach or privacy breach takes place or first commences
on or after the retroactive date; and
(2) You report the adverse media report, security breach or privacy breach in writing to the
Company during the endorsement period, but no later than 60 days from the date an insured
first discovers the adverse media report, security breach or privacy breach.
E. NETWORK ASSET PROTECTION COVERAGE
(1) Loss of Digital Assets
Subject to the limits of liability specified in Section IV of this Endorsement, the Company will
reimburse you for digital assets loss and/or special expenses which you incur during the
endorsement period as a direct result of damage, alteration, corruption,distortion,theft,misuse,
or destruction of digital assets,provided that:
(a) Such damage, alteration, corruption, distortion, theft, misuse, or destruction of digital
assets is directly caused by a covered cause of loss;
(b) The covered cause of loss takes place or first commences on or after the retroactive
date;
(c) You report the covered cause of loss in writing to the Company during the endorsement
period, but no later than 60 days from the date an insured first discovers the covered
cause of loss; and
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 2 of 23
(d) You provide clear evidence that the digital assets loss and/or special expenses directly
resulted from the covered cause of loss.
The Company will pay digital assets loss and/or special expenses for a period of up to twelve
(12) months following the discovery of the damage, alteration, corruption, distortion, theft,
misuse,or destruction of digital assets.
(2) Non-Physical Business Interruption and Extra Expense
Subject to the limits of liability specified in Section IV of this Endorsement, the Company will
reimburse you for income loss,interruption expenses and/or special expenses which you incur
during the period of restoration, but after the waiting period, as a direct result of a total or
partial interruption, degradation in service or failure of an insured computer system, provided
that:
(a) Such total or partial interruption, degradation in service or failure of the insured
computer system is directly caused by a covered cause of loss;
(b) The covered cause of loss takes place or first commences on or after the retroactive
date;
(c) You report the covered cause of loss in writing to the Company during the endorsement
period, but no later than 60 days from the date an insured first discovers the covered
cause of loss; and
(d) You provide clear evidence that the income loss, interruption expenses and/or special
expenses directly resulted from the covered cause of loss.
F. CYBER EXTORTION COVERAGE
Subject to the limits of liability specified in Section IV of this Endorsement,the Company will reimburse
you for cyber extortion expenses and/or cyber extortion monies that you pay as a direct result of a
cyber extortion threat,including a demand for cyber extortion monies,provided that:
(1) Such cyber extortion threat is first made against an insured on or after the retroactive date;
(2) You provide clear evidence that the cyber extortion expenses and/or cyber extortion monies
directly resulted from the cyber extortion threat; and
(3) You report the cyber extortion threat in writing to the Company during the endorsement
period, but no later than 60 days from the date the cyber extortion threat is made against an
insured.
Cyber extortion expenses and/or cyber extortion monies shall not be paid without the Company's prior
consultation and written authorization. You must make every reasonable effort to notify local law
enforcement authorities and the Federal Bureau of Investigation, or similar equivalent foreign agency,
before surrendering any cyber extortion monies in response to a cyber extortion threat.
G. CYBER TERRORISM COVERAGE
Subject to the limits of liability specified in Section IV of this Endorsement,the Company will reimburse
you for income loss,interruption expenses,and/or special expenses which you incur during the period
of restoration,but after the waiting period,as a direct result of a total or partial interruption,degradation
in service,or failure of an insured computer system,provided that:
(1) Such total or partial interruption, degradation in service, or failure of the insured computer
system is directly caused by an act of cyber terrorism;
(2) The act of cyber terrorism takes place or first commences on or after the retroactive date;
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 3 of 23
(3) You report the act of cyber terrorism in writing to the Company during the endorsement
period, but no later than 60 days from the date an insured first discovers the act of cyber
terrorism; and
(4) You provide clear evidence that the income loss,interruption expenses and/or special expenses
directly resulted from the act of cyber terrorism.
SECTION II-DEFENSE,INVESTIGATION,AND SETTLEMENT
The Company will have the right and duty to defend:
A. Any claim for damages covered under Coverage Agreement A or Coverage Agreement B; or
B. Any claim for regulatory fines and penalties and/or a regulatory compensatory award covered under
Coverage Agreement C,
even if the allegations of the claim are groundless, false or fraudulent. The Company has the right to appoint
counsel.
The Company may investigate or settle any claim at its sole discretion. The applicable limits of liability will be
reduced and may be completely exhausted by payment of defense costs. The Company will not be obligated to
pay or defend any claim after the applicable limit of the Company's liability hereunder has been exhausted.
No insured will incur any defense costs or other expenses,or settle any claim,assume any contractual obligation,
admit liability,voluntarily make any payment,or otherwise consent to any settlement or judgment with respect to
any claim without the Company's prior written consent,which will not be unreasonably withheld. The Company
will not be liable for any defense costs or other expenses, settlement or judgment to which the Company has not
consented.
SECTION III-EXCLUSIONS
The insurance provided under this Endorsement does not apply to:
A. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving any
multimedia peril,security and privacy wrongful act,security breach,privacy breach, covered cause
of loss, cyber extortion threat, act of cyber terrorism or adverse media report:
(1) Which was the subject of written notice given to us or to any other insurer prior to the initial
effective date of your e-JD coverage;
(2) Which was the subject of any prior and/or pending written demand made against an insured,
or a civil, administrative or arbitration proceeding commenced against an insured,prior to the
initial effective date of your e-JD coverage, or that involved the same or substantially the same
fact, circumstance,or situation underlying or alleged in such prior demand or proceeding; or
(3) Which an insured had knowledge of prior to the initial effective date of your e-JD coverage.
B. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving any
actual, alleged or threatened discharge,dispersal,release or escape of pollutants, or any direction,request
or voluntary decision to test for, abate, monitor, clean up, remove, contain, treat, detoxify or neutralize
pollutants.For purposes of this exclusion, "pollutants" means any solid,liquid,gaseous or thermal irritant
or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. "Waste"
includes material to be recycled,reconditioned or reclaimed.
C. Any claim for liability assumed by an insured under any oral or written contract or agreement, except
where such liability would apply apart from such contract or agreement and is otherwise covered by this
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 4 of 23
Endorsement. With respect to any multimedia peril, security breach or privacy breach, this exclusion
does not apply to any claim alleging liability assumed under contract.
D. Any claim for breach of any express, implied, actual or constructive contract, warranty, guarantee, or
promise,except where such liability would apply apart from such contract,warranty,guarantee or promise
and is otherwise covered by this Endorsement. This exclusion does not apply to any claim alleging breach
of your privacy policy or liability assumed by contract.
E. Any claim which is covered under any other section of the Policy to which this endorsement attaches.
F. Any claim for violations of the False Claims Act or any similar federal or state law, rule, or regulation
concerning billing errors or fraudulent billing practices or abuse.
G. Any claim for infringement of any patent or the misappropriation, theft, copying, display, or publication
of any trade secret.
H. Any claim for unfair competition,price fixing,deceptive trade practices,restraint of trade,or violation of
any anti-trust laws.
I. Any claim based upon, arising out of,resulting from,in consequence of,or in any way involving:
(1) Any employment or employment-related matters, including, but not limited to, employer-
Employee relations,policies, acts or omissions;
(2) Any actual or alleged refusal to employ any person or any other actual or alleged misconduct
with respect to employees; or
(3) Any actual or alleged obligations of the insured under any workers' compensation,
unemployment insurance, social security,disability benefits or other similar law.
This exclusion does not apply to an otherwise covered claim under Coverage Agreement B,which is
brought by your past,present or future employee alleging a security and privacy wrongful act.
J. Any claim for bodily injury or property damage.
K. Any claim for harassment or discrimination because of,or relating to,race, creed, color, age, sex, sexual
orientation or preference,national origin,religion,handicap,disability,political affiliation,marital status,
or any other basis prohibited by federal, state or local law.
L. Any claim based upon, arising out of,resulting from,in consequence of, or in any way involving:
(1) Satellite failures;
(2) Electrical or mechanical failures and/or interruption including, but not limited to, electrical
disturbance, spike,brownout, or blackout; or
(3) Outages to gas, water, telephone, cable, telecommunications or other infrastructure, unless such
infrastructure is under your direct operational control and such claim is otherwise covered under
Coverage Agreement E or Coverage Agreement G.
M. Any claim for violation of any of United States of America's economic or trade sanctions,including, but
not limited to, sanctions administered and enforced by the U.S. Treasury Department's Office of Foreign
Assets Control ("OFAC").
N. Any criminal proceeding.
O. Any claim based upon, arising out of,resulting from,in consequence of, or in any way involving:
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 5 of 23
(1) Any willful,deliberately dishonest,malicious,or fraudulent act or omission;
(2) Any intentional violation of the law or of your privacy policy; or
(3) The gaining in fact of any profit, remuneration or financial advantage to which an insured was
not legally entitled,
if committed by any insured, whether acting alone or in collusion with other persons. Notwithstanding
the foregoing, the insurance afforded by this Endorsement will apply to defense costs incurred in
defending any such claim until such time as there is a judgment or other final adjudication adverse to the
insured establishing such willful, dishonest, fraudulent, or malicious conduct. The Company will have
the right to recover defense costs incurred in defending such claim from those parties found to have
committed such willful, dishonest, fraudulent, or malicious conduct.
This exclusion does not apply to:
(1) Any insured that did not commit, participate in, or have knowledge of any willful, dishonest,
fraudulent,or malicious conduct described in this exclusion; or
(2) A claim resulting from sabotage by your employee.
P. Any claim based upon, arising out of,resulting from,in consequence of, or in any way involving:
(1) Any actual or alleged multimedia peril, security and privacy wrongful act, security breach,
privacy breach, covered cause of loss, cyber extortion threat, act of cyber terrorism, or
adverse media report that took place or first commenced prior to the retroactive date; or
(2) Any actual or alleged multimedia peril, security and privacy wrongful act, security breach,
privacy breach, covered cause of loss, cyber extortion threat, act of cyber terrorism, or
adverse media report that took place on or after the retroactive date, which, together with an
actual or alleged multimedia peril, security and privacy wrongful act, security breach,
privacy breach, covered cause of loss, cyber extortion threat, act of cyber terrorism, or
adverse media report that took place prior to the retroactive date, would constitute related
multimedia perils, security and privacy wrongful acts, security breaches,privacy breaches,
covered causes of loss, cyber extortion threats, acts of cyber terrorism or adverse media
reports.
For purposes of this exclusion, multimedia perils, security and privacy wrongful acts, security
breaches,privacy breaches, covered causes of loss, cyber extortion threats, acts of cyber terrorism,
or adverse media reports will be deemed related if we determine that they are logically or causally
connected by any common fact, circumstance, situation, event, transaction or series of facts,
circumstances, situations, events or transactions.
Q. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving any
business,joint venture or enterprise not named on the Declarations.
R. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving any
conduct, act, error or omission of any individual serving in any capacity other than as your officer,
director,partner, stockholder, trustee or employee.
S. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving an
insured's insolvency or bankruptcy,the insolvency or bankruptcy of any other individual or entity,or the
failure,inability or unwillingness to make payments because of the insolvency,liquidation,or bankruptcy
of any individual or entity.
T. Any claim based upon,arising out of,resulting from,in consequence of,or in any way involving the wear
and tear, drop in performance, progressive deterioration, or aging of your electronic equipment or
computer hardware.
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 6 of 23
U. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving the
failure of overhead transmission and distribution lines.
V. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving the
gradual deterioration of subterranean insulation.
W. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving fire,
smoke, explosion, lightning,wind,water, flood, earthquake,volcanic eruption,tidal wave, landslide,hail,
force majeure or any other physical event,however caused.
X. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving the
gradual deterioration or wear and tear of an insured computer system.
Y. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving the
actual or alleged inaccurate, inadequate or incomplete description of the price of goods, products or
services.
Z. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving cost
guarantees, cost representations, contract price or cost estimates being exceeded.
AA. Any claim brought by or on behalf of:
(1) Any insured against another insured;
(2) Any entity which is owned, in whole or in part, by an insured, or any entity directly or
indirectly controlled, operated or managed by an insured;
(3) Any entity which is a parent, affiliate or subsidiary of any entity in which an insured is a
partner or joint venturer; or
(4) Any individual or entity who is a partner or joint venturer of any entity in which an insured is
also a partner or joint venturer.
This exclusion does not apply to an otherwise covered claim under Coverage Agreement B, which is
brought by your past, present or future employee alleging a security and privacy wrongful act, but only
if such employee or any of your past or present officers, directors or trustees did not commit,participate in,
or contribute to such security and privacy wrong act or any security breach or privacy breach.
BB. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving
unauthorized trading. For purposes of this exclusion, "unauthorized trading" means trading, which at the
time of the trade is:
(1) In excess of permitted financial limits;or
(2) Outside of permitted product lines.
CC. Any claim based upon, arising out of,resulting from,in consequence of,or in any way involving:
(1) The actual or alleged purchase or sale of securities, or an offer, or solicitation of an offer, to
purchase or sell securities;
(2) The actual or alleged loss of value of any securities; or
(3) Any actual or alleged violation of any securities law such as the provisions of the Securities Act
of 1933,the Securities Exchange Act of 1934,the Sarbanes-Oxley Act of 2002 or any regulation
promulgated under the foregoing statutes, or any federal, state, local, or foreign laws similar to
the foregoing statutes, including "Blue Sky" laws, whether such law is statutory, regulatory or
common law.
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DD. Any claim for violation of the Organized Crime Control Act of 1970 (commonly known as 'Racketeer
Influenced And Corrupt Organizations Act'or'RICO'), as amended,or any regulation promulgated under
the foregoing statutes, or any similar federal, state, local or foreign laws, whether such law is statutory,
regulatory or common law.
EE. Any claim which is brought by the Federal Trade Commission,the Federal Communications Commission
or any other federal, state or local governmental entity, in such entity's regulatory or official capacity.
This exclusion does not apply to an otherwise covered claim under Coverage Agreement C.
FF. Any claim alleging:
(1) The violation of any pension, healthcare, welfare, profit sharing or mutual or investment plans,
funds or trusts; or
(2) The violation of any provision of the Employee Retirement Income Security Act of 1974 and its
amendments and/or the Pension Protection Act of 2006 and its amendments, or any regulation,
ruling or order issued pursuant thereto.
GG. Any claim for any loss,damage,cost,or expenses:
(1) Directly or indirectly caused by,resulting from or in connection with any war,regardless of any
other cause or event contributing concurrently or in any other sequence to the loss;
(2) Directly or indirectly caused by, resulting from or in connection with any action taken by a
government authority to hinder, control,prevent, suppress or defend against any war; or
(3) Resulting from or in connection with any cyber war.
HH. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving your
commercial decision to cease providing a particular product or service,but only if you are contractually
obligated to continue providing such products or services.
II. Any claim based upon, arising out of,resulting from,in consequence of,or in any way involving:
(1) Gambling or pornography;
(2) Prizes,awards or coupons; or
(3) The sale or provision of prohibited, restricted or regulated items such as alcoholic beverages,
tobacco or drugs.
JJ. Any claim based upon, arising out of,resulting from,in consequence of,or in any way involving the use
of programs that are not operational programs or delivered programs.
KK. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving any
insured's intentional use of illegal or unlicensed programs that are in violation of the provisions or laws
referring to software protection.
LL. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving the
confiscation, commandeering, requisition, destruction of, or damage to computer hardware by order of
a government de jure or de facto or by any public authority for whatever reason.
MM. Any claim based upon, arising out of, resulting from, in consequence of, or in any way involving the
existence, emission or discharge of any electromagnetic field, electromagnetic radiation or
electromagnetism that actually or allegedly affects the health, safety or condition of any person or the
environment or that affects the value, marketability, condition or use of any property.
NN. Any claim based upon, arising out of,resulting from,in consequence of,or in any way involving any injury,
sickness, disease, death or destruction,including all forms of radioactive contamination of property:
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(1) With respect to which any insured is also insured under a nuclear energy liability policy issued by the
Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or
Nuclear Insurance Association of Canada, or would be an insured under any such policy but for
exhaustion of its limit of liability;
(2) Resulting from the hazardous properties of nuclear material and with respect to which:
(a) Any person or organization is required to maintain financial protection pursuant to the Atomic
Energy Act of 1954, as amended, or any regulations promulgated thereunder;
(b) Any insured is, or had this policy not been issued would be, entitled to indemnity from the
United States of America, or any agency thereof, under any agreement entered into by the
United States of America,or any agency thereof,with any person or organization;or
(3) Resulting from the hazardous properties of nuclear material,if-
(a) The nuclear material is at any nuclear facility owned by,or operated by or on behalf of, an
insured or has been discharged or dispersed therefrom;
(b) The nuclear material is contained in spent fuel or waste at any time possessed, handled,
used,processed, stored,transported or disposed of by or on behalf of an insured;or
(c) The injury, sickness, disease, death or destruction arises out of the furnishing by an insured
of services, materials, parts or equipment in connection with the planning, construction
maintenance, operation or use of any nuclear facility; provided, however, if such facility is
located within the United States of America, its territories or possessions or Canada, this
Exclusion(3)(c) applies only to injury to or destruction of property at such nuclear facility.
00. Any claim for any loss, cost, liability or expense caused by, resulting from, or in connection with a
dependent system failure.
PP. With respect to Coverage Agreement E, any claim based upon,arising out of,resulting from,in consequence
of, or in any way involving the cost to upgrade,improve,repair,redesign,reconfigure or maintain a service
provider computer system.
QQ. With respect to Coverage Agreement E(1):
(1) Any amount incurred in restoring, updating or replacing digital assets to a level beyond that
which existed prior to the covered cause of loss;
(2) Physical damage to the computer hardware or data center, other than accidental physical
damage or destruction of electronic media so that stored digital assets are no longer machine-
readable;
(3) Contractual penalties or consequential damages;
(4) Any liability to third parties for whatever reason, including legal costs and expenses of any
type;
(5) Fines or penalties imposed by law;
(6) The economic or market value of digital assets;
(7) Costs or expenses incurred to identify,patch or remediate software program errors or computer
system vulnerabilities;
(8) Costs to upgrade, redesign, reconfigure or maintain an insured computer system to a level of
functionality beyond that which existed prior to the covered cause of loss; or
(9) Any losses paid under Coverage Agreement E(2).
RR. With respect to Coverage Agreement E(2):
(1) Any loss arising out of updating or replacing digital assets to a level beyond that which existed
prior to the covered cause of loss;
(2) Contractual penalties or consequential damages;
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(3) Any liability to third parties for whatever reason, including legal costs and expenses of any
type;
(4) Fines or penalties imposed by law;
(5) Costs or expenses incurred to identify,patch or remediate software program errors or computer
system vulnerabilities;
(6) Loss of goodwill and reputational harm;
(7) Costs to upgrade, redesign, reconfigure or maintain an insured computer system to a level of
functionality beyond that which existed prior to the covered cause of loss; or
(8) Any losses paid under Coverage Agreement E(I).
SS. With respect to Coverage Agreements D, E, F and G, any claim based upon, arising out of, resulting from,
in consequence of, or in any way involving an operating system event.
SECTION IV-LIMITS OF LIABILITY
A. With respect to the coverages provided under this Endorsement,the limits of liability are as follows:
(1) Multimedia Liability Coverage: $50,000 each Claim
(2) Security and Privacy Liability Coverage: $50,000 each Claim
(3) Privacy Regulatory Defense and Penalties Coverage: $50,000 each Claim
(4) Privacy Breach Response Costs,Notification Expenses,
and Customer Support and Credit Monitoring Expenses Coverage: $50,000 each Claim
(5) Network Asset Protection Coverage: $50,000 each Claim
(6) Cyber Extortion Coverage: $50,000 each Claim
(7) Cyber Terrorism Coverage: $50,000 each Claim
(8) Aggregate Limit: 1-10 attorneys: $50,000
11+attorneys: $150,000
B. The limit of liability stated in paragraph A(1)through paragraph A(7)above as applicable to "each claim"
is the maximum amount the Company will pay for each claim under each Coverage Agreement of this
Endorsement, including defense costs where applicable, regardless of the number of insureds involved
or affected, the number of individuals or entities making a claim, or the number of claims made.
C. Subject to the provisions respecting "each claim," the "Aggregate Limit" is the maximum amount the
Company will pay for all claims made during the endorsement period under all Coverage Agreements
combined, including defense costs. The "Aggregate Limit" is based on the size of the named insured
firm as of the effective date of this Endorsement and will be determined in accordance with the table
shown in paragraph A(8) above.
D. If the "Aggregate Limit" is exhausted, then the Company's obligations under this Endorsement will be
deemed completely fulfilled and extinguished.
E. All claims made under any one Coverage Agreement which arise out of the same, related, or continuing
acts, facts or circumstances, will be considered a single claim without regard to the number of insureds,
claims, or persons or entities making a claim, and only one "each claim" limit will apply. Such claim
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will be deemed to have been first made on the date the earlier of the related claims was first made and
will be deemed to have been first reported to the Company on the date the earlier of the related claims
was first reported to the Company in writing. Appeals and any post-trial proceedings or consolidated
proceedings approved by us will be considered to be part of the original claim.
F. In the event that a claim is made and applies to more than one Coverage Agreement under this
Endorsement, only one "each claim" limit will apply. The Company has the sole discretion to allocate
amounts paid,if any, against the appropriate limit of liability.
G. In the event two or more claims arising out of the same facts, circumstances, situations, events or
transactions are covered under more than one Coverage Agreement of this Endorsement, only one "each
claim" limit will apply to such claims.We have the discretion to allocate claims paid,if any, against the
appropriate limit of insurance. All such claims, whenever first made, shall be considered as reported to
the Company during the endorsement period in which the first of such claims is reported to the
Company, and shall be subject to the limits of insurance applicable to that policy.
SECTION V-DEFINITIONS
When used in this Endorsement:
A. Act of cyber terrorism means the premeditated use of disruptive activities,or the threat thereof, against
computers, computer systems, networks and/or public internet by any person or group(s) of persons,
whether acting alone or on behalf of, or in connection with, any organization(s) or government(s) with
the intention to intimidate or cause destruction or harm and/or further social, ideological, religious,
political or similar objectives. Act of cyber terrorism includes, but is not limited to, the use of
information technology to organize and execute large-scale attacks against computer systems, networks
and/or public internet,resulting in disabling and/or deleting critical infrastructure, data or information.
B. Adverse media report means any unpredictable report or communication of an actual or potential
security breach or privacy breach, which:
(1) Has been publicized through any media channel including, but not limited to, television,
print media, radio or electronic networks, the internet, and/or electronic mail; and
(2) Threatens material damage to your reputation or your brands.
C. Application program means any computer software program that performs a particular function or task
within the computer operating system for the end-user,including,but not limited to,database programs,
web browsers, enterprise software,word processors, graphics software and media players.
D. Assumed under contract means liability for damages resulting from a multimedia peril, security
breach or privacy breach where such liability has been assumed by you in the form of a written hold
harmless or indemnity agreement, provided that such agreement was executed prior to the date the
multimedia peril, security breach,or privacy breach occurred.
E. BPO service provider means any third party independent contractor that provides business process
outsourcing services for your benefit under a written contract with you,including,but not limited to, call
center services,fulfillment services, and logistical support.
F. Bodily injury means physical injury, sickness,disease,pain or death, and if arising out of the foregoing,
mental anguish,mental injury, shock,humiliation or emotional distress sustained by a person at any time.
G. Byproduct material has the meaning given in the Atomic Energy Act of 1954,or in any law amendatory
thereof.
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H. Claim means:
(1) With respect to Coverage Agreement A (Multimedia Liability) and Coverage Agreement B
(Security and Privacy Liability):
(a) Any written demand for monetary or non-monetary relief made against an insured;
(b) Any civil proceeding or arbitration proceeding initiated against an insured, commenced
by the service of a complaint or similar pleading or notification; or
(c) Any written request to toll or waive a statute of limitations relating to a potential claim
against an insured,including any appeal therefrom;
A claim under Coverage Agreement A or Coverage Agreement B will be deemed to be first
made when an insured first receives notice of any of(1)(a) through(1)(c) above.
(2) With respect to Coverage Agreement C (Privacy Regulatory Defense and Penalties), a
government investigation commenced against an insured by letter notification, complaint, or
order of investigation. A claim under Coverage Agreement C will be deemed to be first made
when it is first received by an insured.
(3) With respect to Coverage Agreement D (Privacy Breach Response Costs,Notification Expenses,
and Customer Support and Credit Monitoring Expenses), your written report to the Company of
an adverse media report, security breach, or privacy breach. A claim under Coverage
Agreement D will be deemed to be first made when such written report is received by the
Company.
(4) With respect to Coverage Agreement E (Network Asset Protection), your written report to the
Company of a covered cause of loss. A claim under Coverage Agreement E will be deemed to
be first made when such written report is received by the Company.
(5) With respect to Coverage Agreement F(Cyber Extortion),your written report to the Company of
a cyber extortion threat.A claim under Coverage Agreement F will be deemed to be first made
when such written report is received by the Company.
(6) With respect to Coverage Agreement G (Cyber Terrorism), your written report to the Company
of an act of cyber terrorism. A claim under Coverage Agreement G will be deemed to be first
made when such written report is received by the Company.
I. Computer hardware means the physical components of any computer system including CPUs,memory,
storage devices, storage media, and input/output devices and other peripheral devices and components,
including,but not limited to, cable, connectors, fiber optics,wire,power supply units,keyboards, display
monitors, and audio speakers.
J. Computer operating system means computer system software that manages or administers computer
hardware, software resources,or provides common services to run an application program. Computer
operating system does not include an application program.
K. Computer program means an organized set of instructions that, when executed, causes a computer to
behave in a predetermined manner. Computer program(s) include, but are not limited to,
communications, networking, operating system, and related computer programs used to create,
maintain,process,retrieve, store, and/or transmit electronic data.
L. Computer system means interconnected electronic, wireless, web, or similar systems (including all
computer hardware and software)used to process and store data or information in an analogue, digital,
electronic, or wireless format including, but not limited to, computer programs, electronic data,
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operating systems, firmware, servers, media libraries, associated input and output devices, mobile
devices, networking equipment, websites, extranets, off line storage facilities (to the extent that they
hold electronic data), and electronic backup equipment.
M. Computer virus means aprogram that possesses the ability to create replicas of itself(commonly known
as "auto-reproduction" program)within other programs or operating system areas or which is capable of
spreading copies of itself wholly or partly to other computer systems.
N. Covered cause of loss means, and is limited to, the following:
(1) Accidental Damage or Destruction
(a) Accidental physical damage or destruction of electronic media so that stored digital
assets are no longer machine-readable;
(b) Accidental damage or destruction of computer hardware so that stored data is no
longer machine-readable;
(c) Failure in power supply or under/over voltage only if such power supply is under your
direct operational control. "Direct operational control" includes back-up generators;
(d) Programming error of delivered programs;or
(e) Electrostatic build-up and static electricity.
(2) Administrative or Operational Mistakes
An accidental,unintentional,or negligent act,error or omission by your employee,a BPO service
provider,or outsourced IT service provider in:
(a) The entry or modification of your electronic data,which causes damage to such data;or
(b) The creation,handling,development, modification,or maintenance of digital assets;or
(c) The ongoing operation or maintenance of an insured computer system excluding the
design, architecture, or configuration of an insured computer system.
(3) Computer Crime and Computer Attacks
An act, mistake or negligent error or omission in the operation of an insured computer system
or in the handling of digital assets by your employee, a BPO service provider,or outsourced
IT service provider,which fails to prevent or hinder any of the following attacks on an insured
computer system:
(a) A denial of service attack;
(b) Malicious code;
(c) Unauthorized access;or
(d) Unauthorized use.
Covered cause of loss does not include any dependent system failure.
O. Criminal proceeding means any governmental action for enforcement of criminal laws,including those
offenses for which conviction could result in imprisonment and/or criminal fine.
P. Customer support and credit monitoring expenses means those reasonable and necessary expenses
which you incur, with the Company's prior written consent, in the event of a privacy breach, for
the provision of customer support activity, including the provision of credit file monitoring services
and identity theft education and assistance for up to a period of twelve (12) months from the date
of enrollment in such credit file monitoring services, in the event of a privacy breach.
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Q. Cyber extortion expenses means all reasonable and necessary costs and expenses which you incur, with
the Company's prior written consent, as a direct result of a cyber extortion threat, other than cyber
extortion monies.
R. Cyber extortion monies means any funds or property which you pay, with the Company's prior
written consent, to a person(s) or entity(ies) reasonably believed to be responsible for a cyber extortion
threat insured under Coverage Agreement F,for the purpose of terminating such cyber extortion threat.
S. Cyber extortion threat means a credible threat or series of related credible threats, including,
but not limited to, a demand for cyber extortion monies, directed at you to:
(1) Release, divulge, disseminate, destroy or use the confidential information of a third party
taken from you as a result of unauthorized access to, or unauthorized use of, an insured
computer system;
(2)
(3) Introduce malicious code into an insured computer system;
(4) Corrupt, damage or destroy an insured computer system;
(5) Restrict or hinder access to an insured computer system,including,but not limited to the threat
of a denial of service attack; or
(6) Electronically communicate with your customers and falsely claim to be you or to be acting under
your direction in order to falsely obtain personal confidential information of your customers(also
known as "pharming," "phishing," or other types of false communications).
T. Cyber war means any harmful act conducted using a computer system (or series of related,repeated or
continuing harmful acts conducted using one or more computer systems) directed against one or more
computers, computer systems, or networks that is committed by, at the direction of or under the control
of a sovereign state, and which is:
(1) Conducted as part of a war; or
(2) Of sufficient intensity, scale or effect to cause a major detrimental impact on:
(a) The functioning of another sovereign state due to disruption of the availability, delivery
or integrity of any essential service in such sovereign state; or
(b) The security or defense of another sovereign state.
Provided, however, that paragraph T(2) above shall not apply to the direct or indirect effect of a cyber
war on an insured computer system that is not physically located in a sovereign state which has suffered
major detrimental impact described in(a) and/or(b) above but is affected by a cyber war.
U. Damages means the amount of money which an insured is legally obligated to pay as aresult of a covered
claim under Coverage Agreement A or Coverage Agreement B, including judgments and any
prejudgment or post-judgment interest awarded against the insured on that part of any judgment paid or
to be paid by the Company,legal fees and costs awarded against an insured pursuant to such judgments,
and settlements negotiated with the Company's consent.
Damages do not include:
(1) Taxes;
(2) Any amount for which an insured is absolved from legal responsibility to make payment to a
third party;
(3) Amounts owed under contract;
(4) Your future profits or royalties or any return, withdrawal, restitution or reduction of your
professional fees,profits or other charges;
(5) Punitive,liquidated or exemplary damages or the multiplied portion of multiplied damages;
(6) Fines,sanctions or penalties;
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(7) Any matters that are deemed uninsurable under applicable law;
(8) The costs to comply with orders granting injunctive or non-monetary relief, including specific
performance or any agreement to provide such relief,
(9) Disgorgement of any remuneration or financial advantage to which you were not legally
entitled; or
(10) Settlements negotiated without the Company's consent.
V. Data means any and all information stored,recorded, appearing or present in or on an insured computer
system, including, but not limited to, information stored, recorded, appearing or present in or on your
electronic and computer databases, the internet, intranet, extranet and related websites, facsimiles, and
electronic mail.
W. Defense costs means reasonable and necessary legal fees, costs and expenses incurred with the Company's
consent in the investigation, defense and appeal of any covered claim under Coverage Agreement A,
Coverage Agreement B or Coverage Agreement C. Defense costs do not include any wages, salaries, fees,
overhead or other charges incurred by, or paid to, any insured for any time spent in cooperating in the
defense and investigation of any claim or potential claim under this Endorsement.
X. Delivered programs means programs, applications, and software where the development stage
has been finalized, having passed all test-runs, and been proven successful in a live environment.
Y. Denial of service attack means an event caused by unauthorized or unexpected interference or a
malicious attack intended by the perpetrator to overwhelm the capacity of a computer system
by sending an excessive volume of electronic data to such computer system in order to prevent
authorized access to such computer system.
Z. Dependent system failure means any outage,interruption,failure,slow down,suspension or degradation
of service of any service provider computer system,however caused.
AA. Digital assets means data and computer programs that exist in an insured computer system. Digital
assets do not include computer hardware.
BB. Digital assets loss means reasonable and necessary expenses and costs which you incur to replace,
recreate, or restore digital assets to the same state and with the same contents immediately before it was
damaged, destroyed, altered, misused, or stolen, including expenses for materials and machine time.
Digital assets loss also includes amounts representing employee work time to replace,recreate,or restore
digital assets, which shall be determined on a predefined billable hours or per hour basis as based upon
your schedule of employee billable hours.
CC. Electronic media means floppy disks, CD ROM's, hard drives, magnetic tapes, magnetic discs, or any
other media on which electronic data is recorded or stored.
DD. Endorsement period means the period of coverage commencing on the effective date specified on this
Endorsement and ending on the earlier of the termination, expiration or cancellation date of the Policy to
which this Endorsement attaches. Endorsement period does not include any extended reporting period.
EE. Essential service means any service that is necessary for the proper operation of the vital functions of a
sovereign state, including, but not limited to, health care services, emergency services, financial services
(including services related to financial institutions and associated financial market infrastructure), utility
services and/or services that are essential for the proper operation of the food, energy and/or transportation
sector.
FF. Firmware means the fixed programs that internally control basic low-level operations in a device.
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GG. Government investigation means a formal investigation instituted against an insured by any federal,
state or local government agency or authority,the subject matter of which is a security breach or privacy
breach.
HH. Hazardous properties means radioactive,toxic or explosive properties.
II. Income loss means financial loss you sustain, as determined in accordance with the provisions of
Coverage Agreement E(2) or Coverage Agreement G.
JJ. Insured means the named insured and any person qualifying as an "Insured" under Section III of the
Policy, but only while such persons are acting within the scope of their duties on behalf of the named
insured.
KK. Insured computer system means:
(1) A computer system operated by and either owned by, or leased to, you;
(2) With respect to Coverage Agreement B only, a computer system operated by a BPO service
provider or outsourced IT service provider and used for the sole purpose of providing hosted
computer application services to you or for processing, maintaining,hosting, or storing
your electronic data, pursuant to a written contract with you for such services.
LL. Internet means the worldwide public network of computers which enables the transmission of electronic
data between different users, including a private communications network existing within a shared
or public network platform.
MM. Interruption expenses means those expenses, excluding special expenses, which you incur in
accordance with the provisions of Coverage Agreement E(2) or Coverage Agreement G, to:
(1) Avoid or minimize the suspension of your business as a result of a total or partial interruption,
degradation in service, or failure of an insured computer system caused directly by a covered
cause of loss or an act of cyber terrorism, which you would not have incurred had no covered
cause of loss or act of cyber terrorism occurred, including, but not limited to, the use of
rented/leased external equipment, substitution of other work or production procedures, use of
third parry services, or additional staff expenditures or labor costs; and
(2) Minimize or avoid a covered cause of loss or act of cyber terrorism and continue your
business.
The amount of interruption expenses recoverable under FF(I) above shall in no case exceed the
amount by which the covered income loss is reduced by such incurred expenses.
NN. Malicious code means software intentionally designed to insert itself and damage a computer
system without the owner's informed consent by a variety of forms including, but not limited to,
virus,worm, Trojan horses, spyware, dishonest adware, and crimeware.
00. Multimedia peril means the release or display of any electronic media on your internet site or print
media for which you are solely responsible,which directly results in any of the following:
(1) Any form of defamation or other tort related to the disparagement or harm to the reputation or
character of any person or organization,including libel, slander,product disparagement,or trade
libel,
(2) Invasion, infringement or interference with an individual's right of privacy including false light,
intrusion upon seclusion, commercial misappropriation of name, person, or likeness, and public
disclosure of private facts;
(3) Plagiarism,piracy, or misappropriation of ideas under an implied contract;
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(4) Infringement of copyright, trademark, trade name, trade dress, title, slogan, service mark or
service name; or
(5) Domain name infringement or improper deep-linking or framing.
PP. Named insured means the person, firm or professional legal business entity named as such on the
Declarations.
QQ. Notification expenses means those reasonable and necessary expenses which you incur, with the
Company's prior written consent,to comply with governmental privacy legislation mandating notification
to affected individuals in the event of a security breach or privacy breach. Notification expenses
include,but are not limited to:
(1) Legal expenses;
(2) Computer forensic and investigation fees;
(3) Public relations expenses;
(4) Postage expenses; and
(5) Related advertising expenses.
RR. Nuclear facility means:
(1) Any nuclear reactor;
(2) Any equipment or device designed or used for separating the isotopes of uranium or plutonium,
processing or utilizing spent fuel, or handling,processing or packaging waste;
(3) Any equipment or device used for the processing, fabricating or alloying of special nuclear
material if at any time the total amount of such material in the custody of an insured at the
premises where such equipment or device is located consists of or contains more than twenty-five
(25) grams of plutonium or uranium 233, or any combination thereof, or more than 250 grams of
uranium 235;
(4) Any structure,basin, excavation,premises or place prepared or used for the storage or disposal of
waste; and
(5) The site on which any of(1) through (4) above is located, all operations conducted on such site
and all premises used for such operations.
SS. Nuclear material means source material, special nuclear material or byproduct material.
TT. Nuclear reactor means any apparatus designed or used to sustain nuclear fission in a self-supporting
chain reaction or to contain a critical mass of fissionable material.
UU. Operating system event means a single act of exploitation of,or a series of related,repeated or continuing
acts of exploitation of, software vulnerabilities in a computer operating system, including, but not
limited to ransomware, wiper malware, computer worms, and computer viruses, the impact of which is
of sufficient intensity,scale or effect to cause a maj or detrimental impact on the functioning of a sovereign
state due to disruption of the availability, delivery, or integrity of any essential service in that other
sovereign state.For purposes of this definition,a major detrimental impact on the functioning of a foreign
state shall be deemed to occur when such impact has been made public through the media, official
statements or otherwise.
VV. Operational programs means programs and software which are ready for operational use, having
been fully developed,tested, and accepted by you.
WW. Outsourced IT service provider means a third parry independent contractor that provides information
technology services for your benefit under a written contract with you. Outsourced IT service provider
services include,but are not limited to, hosting, security management, co-location, and data storage.
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XX. Period of restoration means the period of time that commences on the date when the interruption,
degradation,or failure of an insured computer system began and ends on the earlier of-
(1) The date when the insured computer system is restored or could have been repaired or restored
to the same condition, functionality, and level of service that existed prior to the covered cause
of loss or the act of cyber terrorism with reasonable diligence,plus up to thirty
(30) additional consecutive days after the restoration of the insured computer system to allow
for restoration of your business; or
(2) One hundred and twenty (120) consecutive days after the notice of covered cause of loss or act
of cyber terrorism is received by the Company.
YY. Print media means newspapers,newsletters,magazines,books,and literary works in any form,brochures
or other types of publications, and advertising materials, including packaging, photographs, and digital
images.
ZZ. Privacy breach means any of the below, whether actual or alleged, but only if committed or
allegedly committed by you or by others acting on your behalf for whom you are legally responsible,
including BPO service providers and outsourced IT service providers:
(1) A common law breach of confidentiality, infringement, or violation of any right to privacy,
including, but not limited to, abreach of your privacy policy,false light,intrusion upon aperson's
seclusion, commercial misappropriation of name, person, or likeness, or public disclosure of a
person's private information; or
(2) Any breach of privacy regulations, as they currently exist and as amended, associated with
the confidentiality, access, control, and use of personally identifiable, non-public information,
including,but not limited to:
(a) Health Insurance Portability and Accountability Act of 1996 (Public Law 104- 191),
known as HIPAA, and related state medical privacy laws;
(b) Gramm-Leach-Bliley Act of 1999 (G-L-B), also known as the Financial Services
Modernization Act of 1999;
(c) State and federal statutes and regulations regarding the security and privacy of
consumer information;
(d) Governmental privacy protection regulations or laws associated with the control
and use of personal information;
(e) Privacy provisions of consumer protection laws, including the Federal Fair Credit
Reporting Act(FCRA) and similar state laws;
(f) Title XIII, the Health Information Technology for Economic and Clinical Health Act
("HITECH"), of the American Recovery and Reinvestment Act of 2009 ("ARRA").
A series of continuing privacy breaches or related or repeated privacy breaches will be considered a
single privacy breach and will be deemed to have occurred when the first of such privacy breaches
occurred.
AAA. Privacy breach response costs means those reasonable and necessary fees and expenses which you incur,
with the Company's prior written consent, for the employment of a public relations consultant, if
such action is necessary in order to avert or mitigate any material damage to your reputation or brands,
which results or reasonably will result from an adverse media report.
BBB. Programming error means an error which occurs during the development or encoding of a computer
program, software, or application, which would, when in operation, result in a malfunction or incorrect
operation of a computer system.
CCC. Property damage means injury to tangible property, including all resulting loss of use of that property,
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 18 of 23
and loss of use of tangible property that is not physically injured.Data is not considered tangible property.
DDD. Regulatory compensatory award means a sum of money which an insured is legally obligated to
pay as an award or fund for affected individuals, including a regulatory agency's monetary award to a
third party, due to an adverse judgment or settlement arising out of a government investigation.
Regulatory compensatory award does not include a criminal penalty or fine issued by a regulatory
agency of any kind,including federal, state, or local governmental agencies.
EEE. Regulatory fines and penalties means any civil fines and penalties imposed against an insured as aresult
of a government investigation.
FFF. Reputation means the estimation of trust that patients, customers or clients have in doing business with
you or in purchasing your products or services.
GGG. Retroactive date means the date specified as such on the Retroactive Date Schedule
Endorsement, on or after which acts or events (as detailed under the relevant Coverage Agreement)
must have taken place in order to be considered for coverage.
HHH. Security and privacy wrongful act means any of the following acts, whether actual or alleged,
but only if committed or allegedly committed by an insured:
(1) Failure to prevent or hinder a security breach that in turn results in:
(a) The alteration, copying, corruption, destruction, deletion, or damage to electronic data
stored on an insured computer system;
(b) Theft, loss or unauthorized disclosure of electronic and non-electronic confidential
commercial,corporate,personally identifiable,or private information that is in your care,
custody or control;
(c) Theft, loss, or unauthorized disclosure of electronic and non-electronic confidential
commercial, corporate,personally identifiable, or private information that is in the care,
custody or control of a BPO service provider or outsourced IT service provider that
is holding, processing, or transferring such information on your behalf, provided,
however,that the theft,loss or unauthorized disclosure occurs while your written contract
with such BPO service provider or outsourced IT service provider is in effect; or
(d) Unauthorized use of, or unauthorized access to, a computer system other than an
insured computer system.
(2) Failure to timely disclose a security breach affecting personally identifiable, nonpublic
information or the failure to dispose of personally identifiable, nonpublic information within the
required time period,in violation of privacy regulations in effect now or in the future;
(3) Failure to prevent the transmission of malicious code or computer virus from an insured
computer system to the computer system of a third party,
(4) A privacy breach;
(5) Failure to prevent or hinder participation by an insured computer system in a denial of service
attack directed against internet sites or the computer system of any third party; or
(6) Loss of employee information.
III. Security breach means:
a. Unauthorized access to, or unauthorized use of, an insured computer system, including
unauthorized access or unauthorized use resulting from the theft of a password from an insured
computer system or from any insured;
b. A denial of service attack against an insured computer system; or
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 19 of 23
c. Infection of an insured computer system by malicious code or the transmission of malicious
code from an insured computer system,
whether any of the foregoing is a specifically targeted attack or a generally distributed attack. A series of
continuing security breaches, related or repeated security breaches, or multiple security breaches
resulting from a continuing failure of computer security will be considered a single security breach and
will be deemed to have occurred when the first of such security breaches occurred.
JJJ. Service provider computer system means a computer system that is owned or leased by, and under the
direct operational control of, a BPO service provider or outsourced IT service provider.
KKK. Source material has the meaning given in the Atomic Energy Act of 1954, or in any law amendatory
thereof.
LLL. Special expenses means reasonable and necessary costs and expenses which you incur to:
(1) Prevent, preserve, minimize, or mitigate any further damage to digital assets, including the
reasonable and necessary fees and expenses of specialists,outside consultants,or forensic experts
you retain;
(2) Preserve critical evidence of any criminal or malicious wrongdoing;
(3) Purchase replacement licenses for computer programs because the copy protection system
and/or access control software was damaged or destroyed by a covered cause of loss or an act of
cyber terrorism; or
(4) Notify customers of a total or partial interruption, degradation in service, or failure of an
insured computer system resulting from a covered cause of loss or an act of cyber terrorism.
MMM. Special nuclear material has the meaning given in the Atomic Energy Act of 1954, or in any law
amendatory thereof.
NNN. Spent fuel means any fuel element or fuel component, solid or liquid that has been used or exposed to
radiation in a nuclear reactor.
000. Unauthorized access means the gaining of access to a computer system by an unauthorized person or
persons.
PPP. Unauthorized use means the use of a computer system by unauthorized persons or authorized persons
in an unauthorized manner.
QQQ. Waiting period means the 8 hour period which must elapse before income loss, interruption
expenses and/or special expenses may be payable. The waiting period applies to each period of
restoration.
RRR. War means the use of physical force by a sovereign state against another sovereign state (whether war is
declared or not) or as part of an invasion, acts of foreign enemies, hostilities (whether war is declared or
not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or
amounting to an uprising, military or usurped power, or confiscation, nationalization, requisition or
destruction of or damage to property by or under the order of any government or public or local authority.
SSS. Waste means any waste material containing byproduct material and resulting from the operation by any
person or organization of any nuclear reactor or any equipment or device designed or used for separating
the isotopes of uranium or plutonium, processing or utilizing spent fuel, or handling, processing or
packaging waste.
TTT. You and your means the named insured.
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 20 of 23
SECTION VI - NOTICE PROVISIONS
A. NOTICE OF A CLAIM
(1) As a condition precedent to coverage under Coverage Agreement A, B or C, the insured must
give the Company written notice of any claim made against the insured no later than sixty (60)
days after the claim is first made against the insured.
(2) As a condition precedent to coverage under Coverage Agreement D,E,F or G,you must give the
Company written notice of your claim during the endorsement period,but no later than 60 days
from the date any insured first discovers the event or incident giving rise to such claim.
(3) You must provide the Company with copies of all documentation comprising the claim as well
as any authorization, cooperation, or assistance as the Company may require.
(4) The Company will not be obligated to pay any amounts incurred prior to notification of a claim
to the Company or amounts incurred without the Company's prior written consent.
B. NOTICE OF A POTENTIAL CLAIM
If,during the endorsement period,any insured first becomes aware of any facts or circumstances which
could give rise to a claim covered under this Endorsement,and if the insured provides the Company with
written notice during the endorsement period of:
(1) The details regarding such facts or circumstances;
(2) The nature of the loss incurred;
(3) The identity of the potential claimant(s)involved;
(4) The manner in which the insured first became aware of the facts or circumstances; and
(5) The consequences which have resulted or may result,
then any claim subsequently made arising out of such reported facts or circumstances will be deemed to
be a claim first made on the date notice complying with the foregoing requirements was first received by
the Company.
SECTION VII-LOSS DETERMINATION
A. LOSS OF DIGITAL ASSETS
For any and all coverage provided under Coverage Agreement E(I),digital assets loss will be determined
as follows:
(1) If the impacted digital asset was purchased from a third party, the Company will pay only the
lesser of the original purchase price of the digital asset or the reasonable and necessary digital
assets loss.
(2) If it is determined that the digital assets cannot be replaced, restored or recreated, then the
Company will only reimburse the actual and necessary digital assets loss incurred up to such
determination.
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 21 of 23
B. NON-PHYSICAL BUSINESS INTERRUPTION AND EXTRA EXPENSE AND CYBER
TERRORISM
For any and all coverage provided under Coverage Agreement E(2) or Coverage Agreement G, income
loss will be determined as the reduction of your income during the period of restoration,which is:
(1) Your net income (net profit or loss before income taxes) that would have been reasonably
projected,but which has been lost directly as a result of a total or partial interruption, degradation
in service or failure of an insured computer system caused directly by a covered cause of loss or
an act of cyber terrorism, whichever applies. The revenue projection will take into account the
prior experience of your business preceding the date of the covered cause of loss or the act of
cyber terrorism and the probable experience had no covered cause of loss or act of cyber
terrorism occurred. Revenues include the amount of money paid or payable to you for goods,
products or services sold, delivered or rendered in the normal course of your business. Revenue
projection will be reduced by the extent to which you use substitute methods,facilities or personnel
to maintain your revenue stream. The Company will take into consideration your documentation
of the trends in your business and variations in, or other circumstances affecting, your business
before or after the covered cause of loss or the act of cyber terrorism,which would have affected
your business had no covered cause of loss or act of cyber terrorism occurred; and
(2) Any fixed operating expenses(including ordinary payroll)incurred,but only to the extent that such
operating expenses must continue during the period of restoration.
SECTION VIII-EXTENDED REPORTING PERIOD
A. If an Extended Reporting Period Endorsement is issued to an insured in accordance with the Policy,then
the period for reporting claims under this Endorsement will be automatically extended for a period of up
to one (1)year immediately following termination of the Policy,but only for:
(1) A claim under Coverage Agreement A,B or C which:
(a) Arises out of a multimedia peril, security and privacy wrongful act, security breach
or privacy breach that takes place or first commences on or after the retroactive date
and prior to the expiration or termination of the Policy; and
(b) Is first made against an insured during the extended reporting period; and
(c) Is reported to the Company no later than sixty (60) days after the claim is first made
against an insured.
(2) A claim under Coverage Agreement D,E, F or G which:
(a) Arises out of an adverse media report, security breach, privacy breach, covered
cause of loss, cyber extortion threat or act of cyber terrorism that takes place or first
commences on or after the retroactive date and prior to the expiration or termination of
the Policy; and
(b) Is first made during the extended reporting period; and
(c) Is reported to the Company no later than 60 days from the date any insured first discovers
the event or incident giving rise to such claim
B. If an Extended Reporting Period Endorsement is not issued for an insured, then coverage under this
Endorsement for such insured terminates at the end of the endorsement period.
C. All terms and conditions of this Endorsement, including the limits of liability, will continue to apply
during the limited reporting period.
D. The existence of the limited reporting period will not increase or reinstate the limits of liability set forth
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 22 of 23
in Section IV of this Endorsement.
SECTION IX- OTHER INSURANCE
The coverage provided by this Endorsement will be excess insurance over any other valid and collectible insurance
available,including any self insured retention or deductible portion thereof,whether such insurance is stated to be
primary, pro rata, contributory, excess, contingent or otherwise, unless such insurance specifically applies as
excess insurance over the insurance provided under this Endorsement.
SECTION X- ARBITRATION
Notwithstanding any other provision of this Endorsement or the Policy, any irreconcilable dispute between the
Company and an insured may be submitted to arbitration in accordance with the then current rules of the American
Arbitration Association, except that the arbitration panel shall consist of one arbitrator selected by the insured,
one arbitrator selected by the Company, and a third independent arbitrator selected by the first two arbitrators.
Judgment upon the award may be entered in any court having jurisdiction. Both parties must agree to arbitration.
The arbitrator has the power to decide any dispute between the Company and the insured concerning the
application or interpretation of this Endorsement.However,the arbitrator shall have no power to change or add to
the provisions of this Endorsement. The insured and the Company will share equally in the cost of arbitration.
All other terms and conditions of the Policy remain unchanged.
FLPL e-JD® (R.01/01/2024) Florida Lawyers Mutual Insurance Company Page 23 of 23
FLMFlorida
Lawyers
Mutual NOTICE OF PRIVACY POLICY
INSURANCE COMPANY
Florida Lawyers Mutual insurance Company has always been committed to maintaining customer confidentiality.
The Gramm-Leach-Bliley Act is,a Federal law which deals in part with how financial institutions, including insurance
companies,treat nonpublic personal financial information.Though this law does not apply in commercial
transactions, we appreciate this opportunity to clarify our privacy policy for you.
As part of our insurance business, we obtain certain "nonpublic personal financial information" about you, which for
ease of reading we will refer to as "customer information" in this notice. This information includes information we
receive from you on applications or other forms and in the claims process. We may obtain information about
individual lawyers from the lawyer, a firm administrator, or a partner in a firm.
Florida Lawyers takes your personal privacy very seriously. Because we value our relationship with you:
We do not sell customer information or share it with other organizations not affiliated with Florida Lawyers for their
own marketing purposes.
We restrict access to customer information to authorized individuals who need to know this information to provide
service and products to you on our behalf.
We maintain physical, electronic, and procedural safeguards that protect customer information.
We do not disclose customer information about you except as allowed by law.
We afford prospective and former insured lawyers the same protections as existing insureds with respect to use of
customer information.
The law permits us to share customer information with our affiliates. We have formed an insurance agency subsidiary
that has access to customer information about you.We also may share information about you, such as claims
information,with a reinsurance company with which we have a contractual relationship.
Federal law does not apply to our efforts to market products or services to you. You may receive information about
Florida Lawyers insurance and other insurance products that we believe may suit your needs.
In response to terrorist activities and other international relations, we are or may become subject to Executive
Orders issued by the President of The United States and the USA Patriot Act. Our compliance with Executive Orders
or the USA Patriot Act may require that we disclose certain information about our insured lawyers to Federal
agencies, including Department of The Treasury Office of Foreign Assets Control.We believe that cooperating with
government anti-terrorism measures and other foreign policy initiatives is required by law and good citizenship.
You do not need to call,or do anything as a result of this notice. It is meant to inform you of how we safeguard
your nonpublic personal financial information. You may wish to file this notice with your insurance papers.
Thank you for your support of Florida Lawyers Mutual Insurance Company. We value our relationship with you and
will strive to earn your continued' trust.
Lawyer to Lawyer
Risk Management Hotline
800,631,645% ext, 115
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A claim can stop your
practice in its tracks. You are
That's why we offer Florida Lawyers Mutual not alone.,
members an exclusive Risk Management Hotline.
Anytime you have a question about risk management,we Thank you for choosing
invite you to pick up the phone and dial 800-633-6458,ext.115 Florida Lawyers Mutual
(Monday through Friday,8:00 a.m.to 4:30 p.m.)or email
peggyh@flmic.com. Insurance Company.
You'll connect directly with Peggy S.Hewitt,Esq.,a fellow
Florida lawyer and your Resources&Services Manager at
IF11miriida
Florida Lawyers Mutual.Ms.Hewitt can guide you to helpful
resources,materials,and general information pertaining to IIIIIIIII
your risk management questions. 0
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We're proud to make this resource available to you at no
cost-an exclusive benefit to our members. I R a c e COMPANY
Using the Risk Management Hotline does not satisfy or
Relationship. Strength. Value.
replace any obligation to report incidents or claims as
required by policy terms. www.fimic.com ® 800-633-6458
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That's why the best lawyers ............ LM Mutual@
carry the best insurance.
ARE YOU READY TO BEA STATISTIC?
Get protection you can count on with lawyers' professional
liability insurance from Florida Lawyers Mutual.
01
AN INSYOUR MEMBER URANCE EXPERIENCEBENEFITS1 '
CREATED FOR FLORIDA LAWYERS
V Created by The Florida Bar V Exclusive FREE CLE library with over V Supplemental Claims Expense Coverage
V Owned by our member lawyers 33 hours of videos,including coveted V Disciplinary Proceeding Coverage—
credit types pays defense costs for disciplinary matters
Solo&smal I firms welcome V Cyber liability endorsement included involving the state bar
V Declared first-ever dividend to qualifying on every policy at no cost to you V Aggregate Deductible—you only pay
members in Spring 2022* V Lawyer to Lawyer Hotline—call for one deductible,even if multiple claims
V Admitted carrier with over 30 years confidential risk management guidance arise during the same policy term
experience in the market V Premium credit for claims-free history V Claim repair assistance to help you prevent
V Direct communication with our and low-risk practice areas a situation from becoming a claim
Florida-based Underwriters and V Premium discount for Florida Bar Board V No deductible for claims arising from
Claims Specialists
Certification pro Bono work
V Simple&easy to apply online V Law practice tips,tools,and risk alerts V Trial attendance compensation
V AM Best A Rating for our Excellent V Cybercrime safety resources V Free two-year tail for retirement,death,
Financial Strength
Lawyer Well-Being Resource Center— and disability
V High retention rate—our members love tools to help you find health,happiness,
what we provide,and we love them! and work-life alignment
All features and benefits subject to policy terms and conditions.
*Dividends are paid at the sole discretion of the Companys Board of Directors.This year's dividend does not guarantee the payment or amount of future dividends.
Relationship.Strength. Value.
We've built our reputation on vigorously defending yours.°
www.flmic.com . (800)633-6458 . mailbox@flmic.com
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WIRE FRAUD
Criminals are actively targeting Florida law firms that engage in wire transactions.
They are very good at what they do—and far too many firms have fallen prey.Don't be one of them.
Follow these tips!
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• Urgent requests for a wire transfer or 0 Train yourself and your staff.(Most critical
disbursement of funds errors are made by support staff!)
• Last-minute changes in the wiring 0 Train your clients too.They should be on
instructions guard for criminals posing as your firm.
• Slight variations on the sender's 0 Keep your spam filters and firewalls up to date.
email address Consider hiring a cybersecurity consultant
• Emails with incorrect spelling,odd to vet your fraud prevention&secure your
phrasing,or unusual formatting or systems.
writing style Always assume information supplied by email
• Incoming phone calls from unfamiliar (phone numbers,bank account numbers,
persons or phone numbers email addresses,etc.)may be fraudulent.
"THE
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Before initiating any wire transfer, always call the person
Gus►ng a previously confirmed phone number and verbally
verify the wire request and wire instructions.
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800-633-6458 I for regular news and updates
flmic.com
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FLMIC Member-Exclusive Cyber Risk Management Materials available at portal.flmic.com
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One of the greatest risks that law firms face is the loss or misuse of sensitive client data. Due to viruses, malware, hacking, and even
inadvertent misuse or misplacement of a mobile device or laptop,your clients'valuable information is also a significant liability.
With cyber risks continuing to grow, Florida Lawyers Mutual Insurance Company has partnered with Tokio Marine HCC — Cyber &
Professional Lines Group, to provide all qualified policyholders with a comprehensive cyber risk solution custom-built for legal professionals
and designed to complement your existing legal professional liability coverage.
Our Cyber Liability Insurance solution starts with risk management and mitigation tools to help you prepare and prevent, and follows through
with comprehensive coverage in the event that your practice is the victim of a cyber incident.
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Our cyber risk management website, CyberNET, Multimedia Liability Coverage
has tools and resources to help you safeguard Coverage for defense costs and damages incurred in claims alleging liability
information, increase awareness of cyber risk resulting from the dissemination of online or offline media material, including
and respond in the event of a breach. claims alleging copyright/trademark infringement, libel, slander, plagiarism or
personal injury.
This online resource is available 24/7 and Security and Privacy Liability Coverage
includes: Coverage for defense costs and damages incurred in claims alleging liability
resulting from a security breach or privacy breach, including failure to
0 Tips on effective data security practices safeguard electronic or non-electronic confidential information or failure to
0 Compliance materials by state prevent virus attacks, denial of service attacks or the transmission of
0 Employee training courses malicious code from an insured computer system to the computer system
0 Samples and templates to help you of a third party.
implement policies and breach response
procedures Privacy Regulatory Defense&Penalties Coverage
Coverage for defense costs and regulatory fines and penalties and/or
To access online training&support, regulatory compensatory awards incurred in privacy regulatory proceedings
pport,log in to your FLMIC+account. brought by federal, state, local, or foreign governmental agencies.
Privacy Breach Response Costs,Notification Expenses,and Customer
«t� Support and Credit Monitoring Expenses Coverage
lu Data Breach and Emergency Contact: Coverage for reasonable and necessary mitigation costs and expenses
incurred as a result of a privacy breach, security breach or adverse media
If you suspect your organization has been the report, such as legal expenses, public relations expenses, IT forensic
victim of a cyber security incident or a data expenses, notification expenses, and the cost to set up call centers and
breach, the first action item should be to put provide credit monitoring and identity theft assistance.
Florida Lawyers Mutual on notice.This will help Network Asset Protection Coverage
ensure that you are not jeopardizing coverage (1) Reasonable and necessary amounts incurred to recover and/or replace
for any costs associated with the incident and electronic data that is compromised, damaged, lost, erased, corrupted or
thatyou are engaging experts vetted by stolen;and (2) Business income loss and interruption expenses incurred due
your carrier. to a total or partial interruption, degradation in service or failure of an insured
computer system, including any such incident caused by a hacking attack.
If you have a question regarding your Cyber
Liability coverage or need to know how to Cyber Extortion Coverage
report a claim, please contact Florida Lawyers Coverage for extortion expenses incurred and extortion monies paid as a
Mutual at 800-633-6458 or visit flmic.com for direct result of a credible cyber extortion threat.
more information.
CyberTerrorism Coverage
������ Illrllll I� Coverage for income loss and interruption expenses as a result of a total or
partial interruption of the insured's computer system due to a cyber
I N S U R A N G E C 0 M P A IN Y terrorism attack.
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Missing Deadlines
Calendaring errors remain a leading cause of malpractice claims. Common mistakes include data entry errors,
failing to use file review dates,absence of a backup calendar,and procrastinating until the last minute to
file documents.To avoid this trap,an office must have at its organizational core an office-wide calendar and
practices in place regarding its use.
The system should contain the following characteristics.
Be easy to use, maintain and teach to new personnel.
Include some redundancy,either through multiple paper calendars or the computer.
Contain an off-site calendar backup in the event of a fire or other disaster.
Have the capacity to crosscheck between the master calendar and the backup calendar
to catch calendaring errors.
Have at least one docket date for every open file to ensure that all files are reviewed regularly.
Include tracking procedures that enable the firm to identify who made any given entry.
Make all attorney and non-attorney staff accountable.
A standard calendaring system sets forth all items to be calendared,the frequency of reminder dates,the
applicable deadlines for the various types of cases the firm handles, and the firm's own deadlines for events it
considers critical. For example,a firm might require all lawsuits to be filed no later than three months prior to
the running of the statute of limitations.When the office accepts a tort claim,for example,support staff knows
that a 3-month date (which indicates the imminent running of the statute of limitations) must be calendared.
Critical firm deadline dates of this type will dictate the calendar entries made by the staff.Of course, it is the
attorney's responsibility to calculate those important dates, and it is recommended that the attorney place his
or her initials on the file intake sheet to identify who is responsible for the calculating of a particular date.
AdE
..................................................................................................................................................................................
The Top Ten Malpractice Traps and How to Avoid Them
Stress • • Substance Abuse
It takes just one dysfunctional attorney to ruin a firm's reputation and add significantly to its malpractice
claims history.All too often the problem is compounded by inaction on the part of the law firm.Certain
practices can reduce the chances of encountering such a problem.
Improved o cynic tions Among Firm Members
Does your firm have an open door policy?Can problems be discussed confidentially within the confines of
the firm?Too many attorneys today view the partnership as a purely economic relationship and feel no sense
of loyalty to one another. In this setting, dysfunctional or troubled attorneys have no one in whom they can
confide. Monthly meetings,sharing advice or insights on a matter,and getting together in non-work settings
can help build effective and satisfying working relationships.
You may also consider appointing a fair-minded and well-respected partner as an ombudsman for intra-firm
problems and conflicts.Sole practitioners can find this support by seeking out other lawyers similarly situated,
though confidentiality concerns and other business and ethical constraints require caution in this type of a
situation.
Workloads
Stress can push predisposed attorneys into clinical depression or cause other mental health problems,
including anxiety disorders.Although it may be impossible to remove stress completely from the workplace, it
is possible to manage and reduce the level of stress.
Does the firm measure attorney worth solely on billable hours or the number of open files being handled?
While such a system may be necessary to some degree, it cannot and should not be the sole measure of one's
value.Caseloads should be reviewed periodically to ensure a fair division of labor. Reasonable limits should be
placed on the number of files or cases that may be handled at one time.
Are firm members able to take personal time off without feeling guilty or without being penalized? Firm
members should feel some flexibility insofar as being able to take the occasional hour or so for a child's school
activity or to run a personal errand that cannot be handled after hours. Instituting a policy requiring attorneys
to take vacations away from town and away from files and clients can contribute significantly to maintaining
morale and ensuring enthusiasm in the workplace.
Sensitivity and accommodation for the attorney who is dealing with the added stress of personal crises is
mandatory. During this period, reduced workload or other adjustments should be made.Stress should not be
ignored. Everyone has a breaking point.
AdE
..................................................................................................................................................................................
The Top Ten Malpractice Traps and How to Avoid Them
Stress • • Substance Abuse
111�1 ills
Know the Signs of Substance Abuse and Depression
Symptoms of substance abuse include frequent Monday morning tardiness, missing deadlines, neglecting
mail and phone calls,and missing appointments.There is a slow but steady deterioration in work product
and productivity and an increase in the frequency of excuses in personal relationships.Apparent behavioral
changes could include drinking,defiance, impatience, intolerance, unpredictability,or impulsiveness.
Other apparent behavioral changes associated with depression include inappropriate anger(often in men),
tearfulness,self-criticism, distractibility, and lack of interest in pursuing activities that once brought pleasure,
difficulty concentrating,and forgetfulness.
Seek Help from rofession Ns in Cases of Mental Health Problems or Substance Abuse
Most attorneys acknowledge that substance abuse and mental health issues can increase tremendously the
risk of a malpractice claim and can devastate families, professionals,and entire social circles. Unfortunately,
far fewer will take the risk to intervene and help a colleague find help unless or until the problem has reached
crisis proportions. By the time that point is reached,the neglect, misconduct,or mistake has occurred and the
cost to the firm could be substantial. In the presence of indicia of mental health issues or substance abuse,
one should be encouraged to seek professional help.These problems are treatable, particularly if recognized
and dealt with at an early stage. For substance abuse issues,state bar committees,are a good place to begin.
Typically,they are a committed group of people who have faced similar challenges successfully.
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The Top Ten Malpractice Traps and How to Avoid Them
Poor ClientRelations
Every malpractice claim begins with a dissatisfied client. Poor client relations and conflicted working
relationships can transpire into malpractice claims with amazing haste. Inadequate attorney-client
communication usually is at the heart of the problem.Typical mistakes include failure to obtain client
consent,failure to inform a client of case development,or failure to follow the client's instructions. Many client
relationship errors can be avoided by adopting a simple,commonsense approach to working with clients.
Explain clearly to each new client orally and in writing the purpose for which the firm was hired,the fee
arrangements,the reporting and billing procedures, and the client's obligations.
Listen to the client.Clients may want to pursue non-litigation avenues.Time should be taken at the
beginning of the attorney-client relationship to identify clearly the client's goals or objectives.
Realistic client expectations should be encouraged.Clear and documented explanations about the services
to be performed or not to be performed are crucial. Legal procedures should be explained in simple,clear
language so the client understands what to expect from the representation and has a clear timetable in
mind.
Maintenance of good client communications requires the prompt return of all telephone calls, keeping
appointment times with clients and not keeping them waiting,sending regular case status reports,and
reporting negative information promptly. If the client is copied with correspondence or pleadings,the client
must be informed as to their meaning and purpose.Assignments should be completed on a timely basis. If
an unforeseen delay arises, it should be explained,and a revised expected completion date should be given.
Clients should be billed regularly, and all charges should be explained fully.Clients should be encouraged
to provide ongoing feedback on the quality of the representation they are receiving.
All discussions, recommendations, and actions taken, including a decision not to accept a client,should be
documented.
Letters of closure should be used at the end of the representation to document what was accomplished.
Support staff should be taught the importance of courtesy,timeliness, professionalism,and confidentiality
when dealing with clients.Staff provides the interface between attorneys and clients. If staff is depressed,
overworked,feel taken for granted,or dissatisfied generally, it is important to understand that negative
messages, however unintended,are being sent to clients.
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The Top Ten Malpractice Traps and How to Avoid Them
Ineffective Client Screening
After being served with a malpractice action,attorneys will often mutter"I knew I shouldn't' have taken on
that client."These"problem"clients are often the result of ineffective client screening.Successful practitioners
augment their"gut feelings"with standardized office-wide screening procedures.A firm-wide policy of
screening each prospective client according to a predetermined set of standards is critical. Each member of
the firm is responsible for the clients the other members bring to the firm.With a standardized and effective
screening process, potential disaster clients may be identified and avoided.
A set of screening questions subject to review and modification goes a long way toward weaning out
undesirable clients.A periodic review of problem cases to decipher warning signs of potential danger also
makes sense.Since screening needs vary greatly by practice area, it is wise to check with experienced and
respected practitioners in the geographical area in which one practices to see what aids are being used and
for what other practitioners are screening. It is also a good practice to analyze the office screening procedures
periodically, perhaps annually,to see that they are netting matters and clients desired, match firm expertise
and style,and will be profitable for the firm.
o you have the time to take on the new case and give it the proper attention that the case
deserves?
If not,say no.
o you have the expertise necessary to handle the case?
Don't dabble!There is no such thing as a simple will or a cut-and-dried personal injury case. If you are not
prepared to handle the difficult cases in a given area of practice, do not accept the seemingly simple things.
Often you fail to see where the problems are.Yes,you can develop the expertise given sufficient time, but keep
in mind that sufficient time will be far more than meets the eye at first glance and the client will not be willing
to pay for your education.
if this is a contingency fee case,do you have adequate funds to take the case?
You want to avoid being placed in a situation where case management decisions are being dictated by
economics instead of by legal judgment.
n the client affordyour services?
If not,say no.A fee dispute is in the making if you accept a client who is on a different financial footing.
Minimally,the collection is likely to become an issue,and if you are compelled to collect the fee,the odds of
facing a malpractice claim increase significantly.
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The Top Ten Malpractice Traps and How to Avoid Them
Ineffective Client Screening
ls the prospective client a family member or friend?
Don't be fooled. First, if the work is not satisfactory,favor or not,even the family member or friend will sue.
Accepting work in this situation is foolhardy.Second, if you are unqualified to represent a stranger in a
particular matter, likewise you are unqualified to represent a friend or family member. Don't be pushed into
something you are uncomfortable handling.
Has the prospective client broughtyou the matter at the eleventh hour?
If so,say no. If you do not have adequate time to perform a thorough investigation,you run the risk of missing a
possible claim,failing to identify a defendant,or letting the statute of limitations run.You don't want toend up
paying for your client's procrastination.
Has the prospective client had several different attorneys?
Heed the vvarninQ |iQht!The c|ient may wish to avoid payinQ fees, may beirnpossib|eto satisfy, may bebrinQinQ
a case all others before you believed lacked merit, or will be impossible to resolve satisfactorily.
Does the prospective client behave irrationally or appear confrontational?
|f you are unable to work effectively with someone during the initial interview, itis unlikely to get better over
time.The difficult client all too readily becomes the angry client who will not hesitate to bring a suit.
Does the client have unrealistic expectations?
You cannot guarantee results nor obtain a mil I ion-dol lar judgment on a simple slip and fall. Do not take on
clients whose expectations are simply unobtainable.
The Top Ten Malpractice Traps and How io Avoid Them Ado
Inadequate Research
• • Investigation
The ABA has reported that substantive errors account for over 46%of malpractice claims.Common errors
include failure to know or properly apply the law,failure to know or ascertain a deadline, inadequate discovery
or investigation, and planning or procedural choice errors.
Many of these errors can be prevented through careful, methodical research and procedures. It is important
to review carefully the work of all staff, including contract attorneys and other professionals.The attorney of
record is responsible ultimately for the work of these individuals. Experts should be consulted if uncertainty
about a point of law exists. Lawyers should take the time to study and keep abreast of new developments
in the law and should check closed files in the face of new statutory and case law that might affect clients'
positions and rights.Association with expert co-counsel on significant matters outside one's practice area is
crucial.
As the law changes,the standard of care does not decrease. Lawyers must continue to study the law by
reading,attending seminars,seeking expert consultation, and researching particular issues that need to be
addressed by clients.
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The Top Ten Malpractice Traps and How to Avoid Them
Conflicts ofInterest • •
Conflicts ofMatter
Conflicts of interest and conflicts of matters can arise from a variety of situations. Each firm must establish
stringent procedures for identifying and resolving situations in which these unexpected conflicts may arise.
Practitioners should be wary of these situations.
Representation of two parties,such as a divorcing couple,an estate and its beneficiaries, or a buyer and a
seller who announce,"we agreed to the property settlement,and we just want you to write the agreement."
Representation of opposing theories of law for different, but similarly situated clients, i.e.,a "conflict of
matter"situation.
Representation of opposing sides of an issue, even though the clients are not involved with one another,
such as Exxon and Greenpeace.
Personal involvement in a client's business interests.
Service as a director or officer of a client company.
An unclear statement of non-representation in situations where a clear conflict of interest exists.
Conflicts that arise from all firm acquisitions and lateral hires.
Lawyers must be vigilant about the possibilityofconflicts of interest and conflicts of matterin
undertaking representation. The following i elines offer some helpful hints.
Establish a conflict system to disclose conflicts as early as possible.
Avoid suing former clients.
Take only one side of any case or transaction.Confirm this in writing.
Avoid becoming a director,officer, or shareholder of a corporation concurrent with acting as its lawyer.
Reject offers of remuneration in the form of stock.
Avoid joint representation in a potential conflict situation if there Is any risk of an actual conflict materializing.
If any possibility of conflict exists,seek permission from each client to disclose your representation and its
effect on all clients before accepting representation.Absent permission,withdrawal is the only option.
If you are intending to engage in ajoint or multiple client representation,give full disclosure to all clients
regarding potential and responsibly foreseeable conflicts of interest and their ramifications. Discuss the
effect of both potential and actual conflicts upon your representation of all clients.Advise the multiple
clients that there is no confidentiality between them on matters concerning thejoint representation.Advise
multiple clients to seek the advice of independent counsel on the issue ofwhetherjoint representation
is appropriate.Obtain the written consent of each of the multiple clients after full disclosure and before
continuing the representation.
Strongly urge consultation with independent counsel in cases of actual conflict.Seriously consider not
proceeding with representation if the clients refuse to consult with independent counsel regarding the
issue of joint representation. Have independent counsel acknowledge in writing the fact of having been
consulted concerning multiple representation situations.
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The Top Ten Malpractice Traps and How to Avoid Them
Conflicts ofInterest • •
Conflicts ofMatter
Do not work for areal estate commission,which is based on percentage,while being asked for your legal
opinion regarding a transaction or project.
Do not represent clients with potentially inconsistent defense or differing liability in civil or criminal cases
without written disclosures, as described above,and the clients'written consent. If their potential conflicts
become actual conflicts,you cannot represent them jointly, even with their informed,written consent.
Memories alone are insufficient to record and check potential conflicts of interest and conflicts of matter.
Law practices need systematized procedures for documenting and analyzing potential conflicts for every new
client and new matter accepted by the firm.A two-part system is recommended.
The first part should provide for a method of matching names,which can be accomplished either manually
or by computer. Large firms should have a computerized system.Additionally, firms with more than one office
need a database with matters and names from all offices,as well as communications capability to access the
entire database from any office.The database,whether consisting of index cards at the receptionist's desk or
a computer program,should include many parties.The list found at the end of this chapter,developed by the
Professional Liability Fund that insurers all Oregon attorneys, is the best quick reference discovered.
The second part should include a practice of circulating a "new matter memo"to all professionals and support
staff whenever the firm accepts a new case.This serves as a good conflict of opposing theories check.The
memo should include the following information: identification of all parties, identification of the intake
attorney, all relevant administrative details,a statement of the case,and a description of the work to be
performed. In addition to serving as a further updated conflicts check,circulation of this information allows
everyone in the office to pool resources and thus contribute to the efficient handling of the matter. It also
serves as a warning against accepting a subsequent matter that would require advancing a theory or position
that would be contrary to the new client's interests.
A current and complete database enables the firm to identify and advise clients of relevant changes in the law
affecting their cases.Such a system also permits the firm to analyze the strengths and weaknesses of certain
practice areas and to address them through education, improved planning,and revised procedures.
It is important to remember that a conflicts-checking system is only as good as the people who use it. It must
be used rigorously and consistently to be effective.The database must be checked and updated every time a
new case is accepted. New matter memos must be circulated and returned to the intake attorney promptly
and must have affirmative documentation confirming their review by all attorneys and staff.
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The Top Ten Malpractice Traps and How to Avoid Them
Inappropriate Involvement
in Client Interests
A lawyer's inappropriate involvement in a client's entrepreneurial interests raises conflict of interest issues and
is increasingly a significant basis for legal malpractice.This involvement can take several forms.
Acting as director or officer of a client company.
Investing in client securities.
Becoming involved in one-to-one business deals with a client.
Accepting stock from a client in lieu of a cash fee.
Agreeing to contingent cash fees.
Soliciting other investors on behalf of a client's enterprise.
Problems caused by these activities are many, including: (1) inadequate or nonexistent directors'and officers'
insurance for the lawyer acting both as outside counsel and director of a company; (2)vicarious liability of the
law firm for the acts of a firm member serving as a director or officer of a client company; (3) higher standard of
care and due diligence imposed under federal securities laws on a director who is also the company's lawyer,
as compared to a director who is not the company's lawyer; (4)weakened defense to a malpractice claim by
third parties in cases where a lawyer is also a director of the company and (5)serious conflict-of-interest issues
arising out of a lawyer or a law firm's personal involvement or investment in a client's business interests.
Robert E.O'Malley,vice chairman of the Board and Loss Prevention Counsel for Attorneys' Liability Assurance
Society,suggests six commandments for lawyer involvement in client interests.
Do not permit any partner or employee of the law firm to serve as chair, president,chief executive officer,
chief operating officer,chief financial officer,or general partner of any publicly held client.
Do not permit any partner or employee of the law firm to be a director or officer of a start-up company that
is financing itself with an initial public offering where the law firm is securities counsel to the company or
the underwriter.
If the law firm is acting as securities counsel to the issuer or the underwriter in an initial public offering
under the Security Act of 1933, neither the firm itself nor any partner or employee of the firm should invest
in the underwriter's original allotment(as distinguished from the aftermarket).
If the law firm is acting as securities counsel to the issuer in any public offering under the Security Act of
1933,the firm should not agree to accept any part of the stock in lieu of a cash fee.
If the law firm, partner, or employee of the firm owns securities of a company that is about to make an initial
public offering,the law firm should not act as securities counsel to either the issuer or the underwriter,
unless such securities are redeemed prior to the offering or are"locked up,"so that there is no possibility of
a quick windfall profit for the firm or any of its partners or employees as a result of the public offering.
If the law firm is acting as securities counsel to the issuer or the underwriter in any public offering under the
Security Act of 1933,the firm should avoid any advance agreement whereby a substantial portion of its fee is
explicitly contingent on the marketing of the offering.
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The Top Ten Malpractice Traps and How to Avoid Them
Lack ofAdequate
Documentation • Work
Insufficient documentation of work accounts for many of the client relations and missed-deadline errors
associated with legal malpractice claims.Simple office procedures can prevent many of these errors from
occurring. Each firm or practice should have in place a system for checking the accuracy and content of all
outgoing documents,such as letters, briefs,contracts, and motions.The system should include provisions for
cross-checking of these matters by more than one person.
Good file management should include maintaining a file on all documents prepared or received by the lawyer
for each client matter.Telephone messages and memoranda should also be logged for future reference. Daily
filing procedures help to ensure that information is not lost and is available when needed.Office files should
be reviewed regularly to avoid missing deadlines and to ensure that the system is performing as intended.
As the practice of law keeps pace with our evolving paperless world,the importance of administrative
details-the seemingly menial side of law practice- becomes more important, not less.Consideration of how
electronic files will be stored, backed up,secure,and retrieved is essential to an efficient operation.Consciously
designing a uniform computer filing system, reviewing it regularly and updating it often to assure that files
are maintained confidently and retrieved easily, is critical. Making certain there is a relatively current backup
copy of all data and programs,which is kept at all times in a secure place outside the office, is mandatory to
this evolving paperless computer-driven world.Adhering to these measures will permit resumption of work
should a catastrophe occur,and will assure attorneys'compliance with their obligations to safeguard client
information.
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The Top Ten Malpractice Traps and How to Avoid Them
Zealous Efforts to Collect a Fee
Fee disputes are at the heart of a significant percentage of all legal malpractice claims brought against
attorneys each year.Typically,the attorney sues the client for unpaid fees and then is countersued for legal
malpractice. In some cases, merely mailing a final bill triggers a threat of legal malpractice. In order to avoid
fee disputes, using the following rules in billing and collecting fees for legal services is important.
Don't accept clients whocannot affordyour legal services
It is a lose/lose situation to take on a client who is overly concerned about fees and who ultimately will not be
able to pay his or her legal bill. If you represent such clients,you will be torn between putting in the required
number of hours and minimizing the final costs. Learn to say"no"to these clients.
Written fee arrangements
Consider documenting fees and the scope of work to be done in al I matters. Doing work without a written
agreement should be extremely rare. Each engagement letter or contingent fee agreement should contain
a clear explanation of the legal fees that will be charged for the work to be performed.Any restriction on the
scope of work must be detailed in this agreement. In addition, be specific and itemize the types of out-of-
pocket expenses for which the client will be responsible,such as filing fees,court costs,expert witness fees,
photocopying charges,and computer research.Clients are often astonished by the amount of out-of-pocket
expenses incurred on their behalf. Finally, it is inadvisable to adopt a new fee structure or draft a subsequent
fee agreement while the client's matter is pending.
Bill on a monthlybasis
Attorneys who charge an hourly fee should always bill the client on at least a monthly basis unless the client
has specifically requested another arrangement.Avoid billing the client at the project's completion, unless
the total cost of the representation has been agreed upon in advance.The key to hourly billing is to send
bills and collect your fees on a frequent basis in order to avoid large, unexpected bills. For improved client
communication and satisfaction, it is good practice to send a zero balance bill on occasion,along with a note
indicating why no charges were made in a particular month,and advising that you are proceeding on the case.
Detailed illin statements
Provide detailed billing statements that describe the work performed by each attorney or paralegal on a daily
basis and how long it took. Entries such as 20 hours for"research"are unacceptable. Rather,the entry should
read "research state case law on piercing the corporate veil."
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The Top Ten Malpractice Traps and How to Avoid Them
Zealous Efforts to Collect a Fee
Daily time entries
Every attorney and paralegal that bills on an hourly basis must record his or her time on a daily basis. Keep
a timesheet or pad of paper next to your desk on which you record your work or make regular entries in the
computerized timekeeping system. It has been proven that attorneys fail to record all of their time more
often when regular timekeeping is not required. Require each attorney to submit his or her timesheets for the
preceding week every Monday morning.
Review NN bills
The attorney responsible for the case or matter should review each bill for errors before it is mailed to the
client. In addition to looking for errors,an ongoing assessment of the charges and the value received for the
work should be made. If the time expended was greater than what would have been spent by an attorney with
experience in the area,consider writing off some of the time.
Copy the client on all meaningful correspondence and other materials relating to the client's matter
Ask yourself who is more likely to pay his or her bill?Choice A:the client who has not received a single sheet
of paper from the attorney in three months.Choice B:the client who receives informational copies from the
attorney on a regular basis. It is equally important, however,to avoid forwarding a mass of paper to the client
that confuses rather than communicates. Be sure the office and the client understand from the outset what
communication is necessary and desirable. Follow the agreed-upon plan,straying only to send more not less,
and never allowing a copy to go to the client that is not explained by prior developments or an attached note.
Take prompt action on accounts in arrears
This is the single biggest mistake that attorneys make with respect to fee disputes. Most attorneys joined
the legal profession in order to practice law, not to collect delinquent fees. Unfortunately,the client who
cannot pay a fee today is not likely to pay it tomorrow.The key to being paid is no secret.The key is doing the
unpleasant,that is,working on past due bills early and with conviction.
First,the firm's partners should review all past due accounts on a monthly basis. Be sure that engagement
letters and contracts of employment state the consequences to the client for failing to stay current with
the legal fees,such as withdrawal conditions. Next,the partner responsible for a matter in arrears should
contact the client and inform him or her that the firm will withdraw from the matter or enforce the other
stated conditions if the past due fees are not paid within a stated grace period.Although courts place many
restrictions on withdrawal,the vast majority of clients with fee payment problems who start off paying slowly
become even slower as time goes on. Exercising the firm's withdrawal or other options early in the matter is far
more likely to produce the desired results.
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The Top Ten Malpractice Traps and How to Avoid Them
Zealous Efforts to Collect a Fee
Beware of clients who promise you money"next month." It usually does not materialize.The moral of the story
is that it is better to withdraw and cut your losses when you are owed$1,000 than wait in hopes of payment
only to find yourself suing later to collect a$10,000 arrearage.
Some firms have begun to accept credit cards for fees.This may be a good option but should be examined
carefully.Among other concerns,there is the need to account for the issuing bank's fees. For example, if an
advance for fees is charged to a credit card and the credit is given to the client by depositing it into the client
trust fund,the trust fund must equal the gross amount of the card charge, not the net you will receive. In some
cases this will necessitate a deposit in addition to what is received on the account from the bank.
Never sue for fees
Establish a strict policy against suing for fees. If you cannot work out a realistic payment plan with the client,
consider other alternatives such as arbitration or mediation. If you are tempted to sue for fees,consider this:
the counterclaim for legal malpractice usually seeks an amount far in excess of the legal fees in dispute. In
a recent case,a sole practitioner sued his client for$9,000 in legal fees and received a counterclaim for an
amount in excess of$250,000. In the vast majority of these cases,the attorney ends up dropping his fee suit to
get rid of the malpractice claim.
Collect retainers
If you are having difficulty collecting fees on a regular basis, require a retainer fee upfront. If the client takes
his or her business elsewhere because you were realistic in setting the fee and in asking for a significant
percentage of the fee as a retainer,this may be a client you are better off not having.The area with the largest
accounts receivables is family law.The family law attorneys who are most successful in being paid promptly
have well-crafted retainer agreements which require the client to maintain a certain amount on deposit and
allow the attorney to withdraw if fees are in arrears.
Have another attorney do a thorough,objective file review
There are times when, regardless of having obtained a retainer upfront,an increasing number of unforeseen
hours is spent on a case that outstrips the initial retainer funds. If this occurs,and even if the client has no
intention of paying, it is a good idea to have an independent attorney(preferably a senior member of the
firm or a member of the local bar skilled in the practice area and in duties owed clients) review the case to
assess whether due diligence was performed.Once a client is in your pocket for a significant sum, it is nearly
impossible to be objective about the file and the work you have done for the client.
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The Top Ten Malpractice Traps and How to Avoid Them
Zealous Efforts to Collect a Fee
NN the client
Far more success results from personal telephone calls from the attorney to the client than from letters
from the accounting department or collection agency. Even if the client steadfastly refuses to pay the bill,
at least you have made a good faith effort to collect and if there is any client dissatisfaction, most likely your
conversation has yielded that information. Keeping in mind that the precipitating factor for a professional
liability claim is the perception of the client more than the reality of the facts, information from the call may
provide a good indication as to whether further collection efforts are warranted.
If you decide to pursue collection activity,never do this workyourself
One of the most important services provided by a client in an attorney-client relationship is the objectivity of a
knowledgeable third party whose goal is to protect his or her client's interests.Avail yourself of the benefits of
an attorney-client fee dispute specialist who can be objective and mediate concerns that may arise.
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The Top Ten Malpractice Traps and How to Avoid Them
Unwillingness • Believe • •
Be • for Malpractice
In spite of all the publicity that legal malpractice claims have received in the past few years, many attorneys
believe erroneously that either because they perform adequately for their clients,or they know their clients so
well,they will never be theta rgets of a malpractice claim.Trends in the frequency and dollar value of claims
suggest otherwise.At present attorneys in private practice have between a 4 percent and 17 percent chance of
being sued for malpractice each year depending on thejurisdiction and the nature of their practices.
As the law becomes more complex,the standard of care does not decrease. Lawyers must continue to
study the law through reading, attending CLE seminars,consulting with experts on difficult legal issues,and
researching issues that need to be addressed by their clients.
While you may be one of the lucky ones who are not targeted for malpractice during your career,you cannot
count on it.The key to minimizing your risk is to be acutely aware of the malpractice exposure of each and
every case you take on.Only by recognizing your malpractice risk and by implementing effective prevention
procedures will you lessen the chances of becoming a malpractice statistic.
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The Top Ten Malpractice Traps and How to Avoid Them
F
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°01; °°° ILAWYERS PROFESSIONAL.LfABHUTY INSURANCECREATED MY 1'IM RIFLORIDA EAR! °0°°
CERTIFICATE OF INSURANCE
This Certificate does not amend, extend, or alter the coverage afforded by the policy.
This is to certify that the policy of insurance shown below has been issued and is in force at this time.
NAMED INSURED AND ADDRESS:
Oropeza, Stones&Cardenas, PLLC
221 Simonton Street A
Key West, FL 33040
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TYPE OF INSURANCE: LAWYERS PROFESSIONAL LIABILITY 22 . 23 ,,,m„
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POLICY NUMBER: 105697 WAMP
POLICYTERM: 02/11/2023 to 02/11/2024
LIABILITY LIMITS: $2,000,000 per claim
$2,000,000 total limit
DEDUCTIBLE: $10,000 Annual Aggregate
CANCELLATION:Should the above-described policy be canceled before the expiration date thereof,the
issuing Company will endeavor to mail 30 days written notice to the below named Certificate Holder,
but failure to mail such notice shall impose NO obligation or liability of any kind upon the Company, its
agents, or representatives.
CERTIFICATE HOLDER:
This Certificate is issued as a matter of information only and confers no rights upon the Certificate Holder.
February 2, 2023
AUTHORIft SIGNATLAOE DATE OF ISSUE
Florida APPROVEVEDA BY RISK MANAGEMENT
BYLawyers
DATE 02/23/22
FLMMutual WAIVER N/AX YES_
INSURANCE COMPANY
CERTIFICATE OF INSURANCE
This Certificate does not amend, extend or alter the coverage afforded by the policy.
This is to certify that the policy of insurance shown below has been issued and is in force at this time.
NAMED INSURED AND ADDRESS:
Oropeza, Stones &Cardenas, PLLC
221 Simonton Street
Key West, FL 33040
TYPE OF INSURANCE: LAWYERS PROFESSIONAL LIABILITY
POLICY NUMBER: 101122
POLICY TERM: 02/11/2022 to 02/11/2023
LIABILITY LIMITS: $2,000,000 Per Claim/$2,000,000 Total Limit
DEDUCTIBLE: $15,000 Annual Aggregate
CANCELLATION: Should the above-described policy be canceled before the expiration date thereof, the issuing
Company will endeavor to mail 30 days written notice to the below named Certificate Holder, but failure to
mail such notice shall impose NO obligation or liability of any kind upon the Company, its agents or
representatives.
NAME AND ADDRESS OF CERTIFICATE HOLDER:
Monroe County COCC
1100 Simonton Street, Room 2-206
Key West, FL 33040
This Certificate is issued as a matter of information only and confers no rights upon the Certificate Holder.
February 23, 2022
D rtr°l VE DATE OF ISSUE
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