Acquisition Endorsement available when Purchasing an Existing Practice
Following feedback from the profession, the Queensland Law Society has worked closely with Lexon Insurance to develop an Acquisition Endorsement which now provides a mechanism whereby a practice (the “Purchaser”) intending to acquire another practice (the “Vendor”) may, for the payment of a small additional amount, avoid the claims loading impact of a previously unknown claim arising from a client matter which the Vendor had finally billed and closed prior to the acquisition.
If a claim is subsequently made and is covered by the Acquisition Endorsement, the Purchaser will have the additional benefits of:
- the applicable excess being that amount which would normally have been payable by the Vendor in its own right if it had not been acquired (which will normally be lower than what would otherwise be the case); and
- no deterrent excess applying irrespective of the circumstances.
For more information and to check whether the Acquisition Endorsement may be applied to a transaction involving your practice, Lexon-insured practices can call Anthony Walduck or Tony Charlesworth on (07) 3007 1266.
The disclosures required to be signed by both the Vendor and Purchaser when applying for the Acquisition Endorsement can be downloaded below (member login required).