By David Bridges and Liz Grice

No attorney expects to receive a client grievance or disciplinary inquiry. But if it happens, one phone call can make a significant difference: notifying your professional liability carrier.

A client grievance or disciplinary inquiry can be stressful, but how you respond in the first few days may have a significant impact on protecting both your practice and your professional liability coverage. While many attorneys naturally focus on responding to the complaint itself, one of the most important steps is notifying their professional liability carrier as soon as possible.

It’s a common misconception that professional liability insurance applies only when a malpractice lawsuit is filed. Many attorneys are unaware that some professional liability policies provide limited coverage for disciplinary proceedings, including defense costs. Coverage, limits, exclusions, and reporting requirements vary by policy, so reviewing your policy before an issue arises can help avoid surprises later.

Depending on the policy, disciplinary defense-cost coverage may be available without a deductible, helping reduce the financial impact of responding to a grievance. Disciplinary proceedings can create significant legal expenses even when no malpractice lawsuit has been filed.

Four Reasons to Report Early

1. Potential coverage for disciplinary defense costs. Depending on your policy, disciplinary proceedings may include defense-cost benefits, and some policies may provide this coverage without a deductible.
2. Compliance with reporting requirements. Timely notice may help preserve coverage under your policy.
3. Access to experienced claims professionals. Your carrier may provide guidance and resources before a matter escalates.
4. Protection if the matter becomes a malpractice claim. Today’s grievance could become tomorrow’s malpractice claim.

Final Takeaway

A disciplinary complaint doesn’t automatically mean you’ve done anything wrong. However, delaying action can limit your options. Early reporting may help preserve potential coverage, provide access to experienced claims professionals, and position you to respond strategically if the matter evolves into a malpractice claim. Acting early can help protect both your practice and your professional reputation.

Disclaimer: Coverage, exclusions, reporting requirements, and limits vary by policy. Attorneys should review their policy language and consult their insurance professional regarding specific coverage questions..