Tail coverage protects you after you retire and your legal malpractice policy ends. It covers claims made after your retirement that relate to work you did while your policy was active. Without this type of policy, you risk having no coverage for those claims.
Tail coverage doesn’t extend your policy period, but it does extend the time you have to report claims. You must have an active policy when you buy tail coverage. If you’re retiring, switching careers, or closing your firm, tail coverage can give you the continued protection you need.
Why Malpractice Risk Doesn’t End After Your Last Case
Even if you stop practicing, you could still face claims related to your past work. For example, a client might later find an issue with a will you drafted or allege that you missed a deadline in a case you handled years ago. Claims like these can surface long after you close your practice. That’s why malpractice risk doesn’t end when your final case does. Without tail coverage, you’ll have no protection if someone files a claim after your policy expires.
What to Consider Before You Retire From Practice
Before you retire from practicing law in Wisconsin, you’ll want to take the time to close out your practice carefully. Planning ahead can help you protect your clients, your professional reputation, and your peace of mind. Here’s what you should consider:
- Notify Your Clients as Early as Possible: Give any active clients written notice of your retirement so they have time to find new representation. Document every notification for your records.
- Transfer or Close Open Cases: Decide how you’ll wrap up each case. Some may require formal withdrawal, while others might need to be transferred to another lawyer.
- Set a Final Date for Accepting New Work: Stop taking new clients well before your retirement date to prevent last-minute conflicts, rush jobs, or unresolved matters when your practice closes.
- Secure Tail Coverage: Talk with a malpractice insurance provider about tail coverage. This protection covers any claims made after you retire based on work you did while still in practice. Without it, you may be personally responsible for future claims.
- Close Your Trust Account Properly: If you hold any client funds in trust, you’ll need to resolve all balances per Wisconsin trust accounting rules before you shut down your trust account.
- Store or Dispose of Client Files Responsibly: Review your obligations under Wisconsin’s rules for file retention. Secure files that need to be kept and shred any you no longer need to store.
- Tell the Office of Lawyer Regulation (OLR): If you plan to retire from practice entirely, update your status with the OLR to avoid unnecessary fees and clarify your role with the State Bar.
- Update Your Contact Information: Leave a reliable phone number, email address, or mailing address with your former clients, colleagues, and insurance carrier.
How WILMIC Supports Retiring Lawyers with Tail Coverage
Wisconsin Lawyers Mutual Insurance (WILMIC) offers tail coverage to help lawyers close their practices with confidence. Our tail coverage extends the time you have to report a claim after your policy ends. You keep the same policy terms, conditions, and liability limits. We provide this coverage through an endorsement to your current policy, and you can choose to extend the reporting period for one, two, three, six years, or even indefinitely. If you’re thinking about retirement, WILMIC can walk you through your options and help you secure the right coverage for your needs.
Protect Your Legacy and Reputation with Tail Coverage
You’ve worked hard to build your reputation. You deserve robust tail coverage to protect it. The team at WILMIC is here to talk you through your options before you retire. We’re proud to serve firms across Wisconsin from our offices in Madison, and we understand how important your retirement is to you. Contact us now, and let us help you secure a personalized plan that fits your needs and gives you peace of mind for your golden years.