{"id":30272,"date":"2016-03-31T19:33:54","date_gmt":"2016-03-31T19:33:54","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/legal\/practice\/a-glossary-of-legal-malpractice-insurance-terms.html"},"modified":"2016-06-20T18:51:50","modified_gmt":"2016-06-20T18:51:50","slug":"a-glossary-of-legal-malpractice-insurance-terms","status":"publish","type":"practice","link":"https:\/\/lp.findlaw.com\/legal\/practice\/practice-guide\/a-glossary-of-legal-malpractice-insurance-terms.html","title":{"rendered":"A Glossary of Legal Malpractice Insurance Terms"},"content":{"rendered":"<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><em>This article was edited and reviewed by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw Attorney Writers<\/a><\/em><\/p>\n\n                | Last reviewed\n        <time>\n                            June 08, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\" rel=\"noopener\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\" rel=\"noopener\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n\n<p>Before you buy your malpractice insurance policy, you must understand common malpractice insurance terms. While many of these terms may be familiar to you from other insurance policies, certain terms are unique to malpractice insurance.<\/p>\n<p>Here&#8217;s FindLaw&#8217;s Glossary of Insurance Terms to help you out.<br>\n<\/p>\n<p><b>Glossary of Insurance Terms<\/b><\/p>\n<ul>\n<li><b>Best&#8217;s Capital Adequacy Relativity (BCAR)<\/b>:<br>\nA measure of an insurance company&#8217;s capital strength. Each company is assigned a letter grade derived from proprietary methods developed by Best&#8217;s, a rating and analysis company. This letter grade is a good indicator of an insurance company&#8217;s monetary strength.<\/li>\n<li><b>Broker<\/b>:<br>\nInsurance advisor representing the insured when shopping for insurance. In some cases, a <a title=\"Broker\" adhocenable=\"false\" href=\"https:\/\/dictionary.findlaw.com\/definition\/broker.html\" rel=\"noopener\">broker<\/a> is affiliated with a particular insurance company. An independent broker represents two or more insurance companies. Brokers earn commissions on selling and servicing insurance policies.<br>\n<\/li>\n<li><b>Claims-Made Policy<\/b>:<br>\nA <a title=\"Claims Made Policy\" adhocenable=\"false\" href=\"https:\/\/dictionary.findlaw.com\/definition\/claims-made-policy.html\" rel=\"noopener\">type of policy<\/a> that covers claims that are made during the policy period. If a claim occurs after the policy period, it is not covered even if the event occurred during the policy period.<br>\n<\/li>\n<li><b>Coverage Period<\/b>:<br>\nThe duration of coverage.<br>\n<\/li>\n<li><b>Declaration Page<\/b>:<br>\nThe part of the insurance policy that discloses the basic terms of the policy.<\/li>\n<li><b>Defense Costs<\/b>:<br>\nThe cost of defending the claim.<br>\n<\/li>\n<li><b>Endorsement<\/b>:<br>\nAn <a title=\"Endorsement\" adhocenable=\"false\" href=\"https:\/\/dictionary.findlaw.com\/definition\/endorsement.html\" rel=\"noopener\">amendment or exception<\/a> to the policy terms.<br>\n<\/li>\n<li><b>Eroding Limits<\/b>:<br>\nType of coverage that includes the cost of defending a malpractice claim in the total policy limits. Sometimes referred to as self-consuming policy.<br>\n<\/li>\n<li><b>Experience<\/b>:<br>\nA record of losses.<br>\n<\/li>\n<li><b>Insured<\/b>:<br>\nThe <a title=\"Insured\" adhocenable=\"false\" href=\"https:\/\/dictionary.findlaw.com\/definition\/insured.html\" rel=\"noopener\">consumer of the policy<\/a>. Also known as the policy holder.<br>\n<\/li>\n<li><b>Limits of Insurance<\/b>:<br>\nThe total amount past which an insurance company is no longer required to pay.<br>\n<\/li>\n<li><b>Managing General Agent<\/b>:<br>\nAn intermediary between the insurance company and the broker, representing the insurance company. In certain cases, a broker contacts an insurance company via a managing general agent. This practice is more common when the broker does not represent a specific company.<br>\n<\/li>\n<li><b>Occurrence Policy<\/b><br>\nA <a title=\"Occurrence Policy\" adhocenable=\"false\" href=\"https:\/\/dictionary.findlaw.com\/definition\/occurrence-policy.html\" rel=\"noopener\">type of policy<\/a> that covers claims relating to an occurrence during the policy period. If the event occurs during the policy period, it is covered even if the claim is brought after the policy is no longer in effect.<br>\n<\/li>\n<li><b>Policy<\/b>:<br>\nThe <a title=\"Policy\" adhocenable=\"false\" href=\"https:\/\/dictionary.findlaw.com\/definition\/policy.html\" rel=\"noopener\">contract<\/a> defining all the terms and conditions of the insurance coverage.<br>\n<\/li>\n<li><b>Policy Limits<\/b>:<br>\nThe maximum coverage offered by the policy. It may be set in an aggregate basis or in a per-claim basis.<br>\n<\/li>\n<li><b>Policy Period<\/b>:<br>\nThe time between the start or inception of the policy and the end or termination of the policy.<br>\n<\/li>\n<li><b>Premium<\/b>:<br>\nThe <a title=\"Premium\" adhocenable=\"false\" href=\"https:\/\/dictionary.findlaw.com\/definition\/premium.html\" rel=\"noopener\">cost<\/a> of the insurance policy.<br>\n<\/li>\n<li><b>Prior Acts Coverage<\/b>:<br>\nCoverage for acts undertaken before the policy start date.<br>\n<\/li>\n<li><b>Settlement Approval<\/b>:<br>\nThe right to approve settlements for any malpractice claims.<br>\n<\/li>\n<li><b>Tail Coverage<\/b>:<br>\nCoverage for acts undertaken after the policy end date. Sometimes referred to as extended reporting endorsement.<br>\n<\/li>\n<li><b>Underwriting<\/b>:<br>\nThe <a title=\"Underwriting\" adhocenable=\"false\" href=\"https:\/\/dictionary.findlaw.com\/definition\/underwriting.html\" rel=\"noopener\">process<\/a> by which an insurance company evaluates your risk.<br>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Before you buy your malpractice insurance policy, you must understand common malpractice insurance terms. While many of these terms may be familiar to you from other insurance policies, certain terms are unique to malpractice insurance.<\/p>\n","protected":false},"parent":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","_cloudinary_featured_overwrite":false},"practice_categories":[6460,6457],"class_list":["post-30272","practice","type-practice","status-publish","hentry","practice_categories-practice-guide__malpractice-insurance","practice_categories-practice-guide"],"acf":[],"_links":{"self":[{"href":"https:\/\/lp.findlaw.com\/legal-api\/wp-json\/wp\/v2\/practice\/30272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lp.findlaw.com\/legal-api\/wp-json\/wp\/v2\/practice"}],"about":[{"href":"https:\/\/lp.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/practice"}],"wp:attachment":[{"href":"https:\/\/lp.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=30272"}],"wp:term":[{"taxonomy":"practice_categories","embeddable":true,"href":"https:\/\/lp.findlaw.com\/legal-api\/wp-json\/wp\/v2\/practice_categories?post=30272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}