In the first year of your new business you met and engaged a lawyer for your growing business. She has learned your business, your procedures and your people. Now your business has been sued and of course you want to use your lawyer who you know and who knows you.
Can you select your own lawyer and have your insurer pay for their work defending you? Maybe. You would have had to tell your insurance broker to tell your insurer to add the “Choice of Counsel” endorsement to your policy.
The Choice of Counsel endorsement is not a standard part of a CGL, professional liability, D&O or EPLI policy. You can get it only by asking and you may or may not owe an additional premium.
Generally, you will pay the attorney you selected until your deductible is satisfied, or your retention is exhausted. Thereafter the insurer will either pay your lawyer or reimburse you for your payment to your lawyer.
Additionally, the insurer may add to the Choice of Counsel endorsement that the selected attorney will agree to the insurer’s hourly rates.
