An Illinois District Court of Appeals ruled a case of first impression on a policy language dispute.  In Illinois State Bar Association Mutual Insurance Co. v. Frank M. Greenfield & Assoc’s, the dispute arose because the attorney sent a letter to a client admitting to an error, and by doing so, a clause in the lawyers professional liability insurance policy was triggered stating that the insurance no longer was in force.  The court issued summary judgement in the law firm’s favor based on two principals.  The first is that the lawyer had an ethical duty to inform his client about a mistake – even if the insurance policy forbade it.  The second opinion described that an insurance policy should not trump good public policy.

A ruling on this particular part of the insurance policy is new and will impact future court decisions.  As each law firm professional liability policy is unique, it is important to contact an experienced broker who can help break down your firm’s insurance.