Interrelated Wrongful Acts
Key Takeaway
Multiple wrongful acts that share a common nexus of fact, circumstance, cause, or origin, treated as a single claim under the policy. This aggregation provision determines whether related incidents consume one set of limits or multiple sets.
Definition
Multiple wrongful acts that share a common nexus of fact, circumstance, cause, or origin, treated as a single claim under the policy. This aggregation provision determines whether related incidents consume one set of limits or multiple sets. How a policy defines interrelatedness can dramatically affect the total coverage available when multiple claims arise from similar work.
Why This Matters for Law Firms
How claims are handled directly impacts your firm financially and reputationally. Understanding the claims process and related terminology helps law firm leadership make informed decisions when a claim or potential claim arises, and ensures you do not inadvertently jeopardize your coverage by failing to comply with policy requirements.
Example Usage in Context
When a partner receives a demand letter from a former client, the firm's risk manager might reference this: "We need to understand the interrelated wrongful acts requirements under our policy before taking any action. Let me contact our carrier and broker immediately."
Related terms
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