Walker & Company
When a Partner Leaves a Small Firm: Don’t Forget the Insurance
In a small firm, one partner stepping away is a big deal. If there are three of you and one leaves, you feel it the next day: clients have questions, calendars shift, and even your renewal application suddenly looks different. The work usually finds a home. The part that trips people up is the insurance.
I see the same patterns repeat: a founding partner scales back, someone goes in-house, or a lawyer spins up a solo practice and takes a few matters along. Different stories, same set of coverage questions. Here’s the way I walk clients through it—clear steps, with just enough explanation to avoid the usual landmines.
If You’re the Partner Leaving
- Know where you’re headed. Retiring, going in-house, joining another firm, or starting a solo each point to a different insurance move. Decide that first—coverage flows from it.
- Grab your paperwork now. Save your latest dec page, endorsements, retroactive date, and loss runs. You’ll need them to buy a tail, apply as a solo, or prove prior acts at a new firm.
- Sort out past work (don’t assume). Your old files don’t disappear. Either the firm’s policy continues to cover what you already did, or you buy an ERP (tail). Get the answer in writing.
- Going solo? Ask about prior acts. Some carriers let you carry your retro date forward; others won’t. If they won’t, you’ll need an ERP from the old policy plus a new solo policy going forward—no gaps.
- Leave things tidy. Hand off a matter list with short status notes and who’s taking point. Two years from now you’ll be glad you did.
If You’re the Firm Staying
- Make a simple plan on paper. Last day, which files the partner touched, and who owns each next step. Most claims come from the “I thought someone else called them” files.
- Loop in your broker early. Share the date, whether any clients are moving, and how your practice mix changes. Waiting until renewal = surprises for everyone.
- Decide who covers prior work. Will the firm keep it on the policy, or should the departing lawyer buy an ERP? Put it in writing. Many firms chip in on the tail to keep things clean.
- Do a quick risk sweep. Look for soft deadlines, unhappy clients, or dormant matters. If something smells off, report a circumstance while you’re unquestionably covered.
- Update the application & endorsements. Roster changes, of-counsel/part-time status, and a new practice mix all affect underwriting and pricing. Get ahead of it.
Common Trip-Ups I See
- Assuming a new firm automatically covers the lawyer’s old files.
- Letting client updates or docket transfers slip during the handoff.
- Leaving even a short gap between policies and losing prior acts.
- Keeping the change quiet until renewal—carriers don’t appreciate surprises.
None of this is complicated, but it’s detail work. If someone’s leaving—whether that’s next month or next quarter—take an afternoon to lock down the insurance piece. It prevents the “I thought you handled that” email a year from now.