Of counsel relationships are common in modern law firms, especially as firms move away from traditional staffing models. While these arrangements can be operationally effective, they often create insurance issues when applications and renewals aren’t handled carefully.
Many coverage problems tied to of counsel attorneys don’t stem from the policy itself — they stem from how the firm described the relationship to the carrier.
Why Insurance Applications Matter
Insurance applications aren’t just administrative forms. They are relied upon by carriers to assess risk, determine coverage terms, and evaluate claims.
When a firm submits an application, the carrier assumes the information accurately reflects how the firm operates. That assumption becomes critical when a claim is filed.
Common Application Mistakes
One of the most frequent mistakes is leaving of counsel attorneys off the application entirely. Firms often assume disclosure isn’t required because the attorney isn’t a W-2 employee.
Another common issue is misclassification. Listing an of counsel attorney under the wrong role can create confusion about whether coverage applies.
Inconsistency is also a major problem. Changes from year to year without explanation can raise red flags during underwriting or claim review.
Why “Of Counsel” Isn’t Always Enough
Each insurance carrier defines insureds differently. Some policies include of counsel automatically under specific conditions, while others require explicit disclosure or scheduling.
If the application doesn’t align with the policy’s definition of who is insured, coverage can fail — even when there was no intent to mislead.
What Happens During a Claim
When a malpractice claim arises, carriers review more than just the policy. They examine applications, renewal submissions, contracts, websites, and how attorneys present themselves to clients.
Discrepancies between these sources can create delays, additional scrutiny, or disputes over coverage.
Renewals Require Re-Evaluation
Renewals are not a continuation of last year’s coverage. They are a new underwriting decision.
If a firm’s structure changed and the application didn’t reflect those changes, the carrier may assume the original information still applies — which can cause issues later.
How to List Of Counsel Correctly
The goal isn’t to over-explain. It’s to describe reality clearly and consistently.
Firms should review how of counsel attorneys operate, how they are presented to clients, and how responsibility flows. Insurance submissions should then reflect that structure accurately.
Protecting the Firm Long-Term
Of counsel relationships can be valuable, but only when insurance keeps pace with how the firm actually works.
At The Bunker, we help law firms align applications, renewals, and coverage so there are no surprises when it matters most. Our focus is helping firms move from danger to a safe place — before a claim or renewal exposes gaps.