What is Corporate or Employed Counsel Professional Liability?
Corporate or Employed Counsel Professional Liability Insurance is designed to protect in-house attorneys from professional liability claims that fall outside their employer’s primary insurance coverage. While corporate lawyers are typically covered under their company’s professional liability policy, that coverage may not extend to legal services unrelated to the employer’s business. This specialized policy provides protection for those gaps.
Who Needs It
This coverage is ideal for in-house counsel, corporate attorneys, and legal professionals employed directly by companies rather than law firms. If you provide legal advice outside your employer’s scope—whether for friends, family, or other employees—you could be personally exposed to liability. This insurance is particularly important if your employer becomes insolvent or exhausts its liability limits due to other claims.
What It Typically Covers
Employed Counsel Liability Insurance can help cover:
- Legal advice given to others for a fee, outside of your employer's business
- Pro bono work for friends or relatives
- Casual legal advice to coworkers or acquaintances
- Coverage gaps when the employer’s policy is unavailable or maxed out
- Defense costs and settlements for covered claims
Common Exclusions and Limitations
While coverage can be broad, typical exclusions may include:
- Intentional wrongdoing or criminal acts
- Claims arising from services performed before the policy period
- Matters already covered under another policy
- Claims related to services provided in jurisdictions where you’re not licensed
Factors That Influence Cost
Several elements can affect the cost of your coverage, including:
- Your years of experience and practice area
- The scope and frequency of outside legal work
- Claims history or prior disciplinary actions
- Policy limits and selected deductibles
Proof of Insurance and Compliance
Some companies or clients may require proof of professional liability coverage before allowing you to provide legal services. Requirements can vary by state and employer. Having this coverage in place helps demonstrate professionalism and compliance with industry expectations.
How to Get a Quote
To protect yourself from unexpected legal claims related to your legal advice outside of corporate duties, get a quote today.
Frequently Asked Questions
Does my employer’s insurance cover all my legal work?
No. Your employer’s policy generally only covers legal work tied directly to their business operations. Work done outside that scope may not be covered.
Can I be sued for giving free legal advice to a friend?
Yes. Even unpaid advice can lead to liability if the recipient relies on it and suffers harm. This coverage helps protect you in such situations.
What if my employer goes bankrupt?
If your employer becomes insolvent, their liability insurance may no longer be available. This policy can provide protection when employer coverage lapses.
Is this coverage only for full-time corporate lawyers?
No. Part-time and contract in-house counsel may also benefit from this coverage, especially if they offer legal services beyond their employer’s business.
Does this replace my employer's insurance?
No. This policy is designed to supplement your employer’s insurance, not replace it. It fills coverage gaps for non-employer-related legal work.
Still have questions? Talk to a local insurance expert.