Many corporations hire in house legal counsel to handle day to day legal matters for the company. These matters can include employment related issues, real estate, licensing and other standard services. A company’s E&O and D&O policies may not extend coverage to those matters that are being performed by in-house counsel. The industry has developed specific insurance products designed to cover this risk. Common risks covered by an employed lawyers E&O insurance policy are as follows:
1. Tax planning and advise for Corporate officers or other employees
2. Responding to complaints and other legal filings
3. Reviewing merger and acquisition documents
4. Negotiating real estate deals
5. Filing corporate documents
6. Maintaining compliance with state and federal regulations
7. Drafting legal documents in hiring and firing of employees
8. Representing the company in court hearings
9 Negotiating with Plaintiff counsel
In some cases a Directors and Officers Liability policy can cover some of these risks, however, for those services that need to be performed by an attorney, the D&O policy will typically not respond. A D&O policy will typically not respond to a claim relating to failure to prepare legal documents correctly, submit and file corporate documents or even represent the company at hearing and depositions. A properly structured employed lawyers E&O policy is essential for any company that employs a legal counsel on staff.
