Reciprocal Insurance Exchange
Posted August 4, 2006 12:44 PM
There has been some talk lately on INTA and elsewhere concerning Professional Liability Insurance for Trademark Lawyers. One suggestion that I have not seen mentioned is that of a Reciprocal Insurance Exchange.
Defined: A reciprocal insurance exchange is a non-profit organization of individuals, commonly termed subscribers, who mutually insure one another while each separately assumes his or her share of each risk. Its chief administrator is an attorney-in-fact.
The rationale behind a reciprocal insurance exchange is for individuals, who could not otherwise afford insurance, to pool together to establish an insurance coverage policy in a reciprocal agreement.
The agreement is designed to cover specific areas of liability common to a particular industry. In our case coverage for trademark and patent lawyers professional liability insurance.