What is the difference between an Of Counsel and an Independent Contractor?

There are two types of "Of Counsels". One type is the semi-retired partner/officer, usually at least 65 years old, who comes in the office one or two days a week and is not usually in charge of any cases. We usually do not charge a premium for this person. The other type is a specialist. He is paid a fee for consulting or handling certain types of cases. He may also be working for other firms. If he works 20 hours or more per week on behalf of the Named Insured, a premium is charged. However, if he works less than 20 hours per week on behalf of the Named Insured or if he has an individual professional liability coverage, we usually do not charge a premium.

An Independent Contractor is hired to assist a law firm for a specific period of time or for a specific cases or cases for which the Independent Contractor has a specialization. Sometimes, the Independent Contractor may even be a permanent Independent Contractor in the firm. A smaller firm may hire an Independent Contractor for economic reasons in that the firm does not have the benefits costs they incur for permanent employees or associates. Coverage is not automatic for the Independent Contractor. Coverage can only be provided by endorsement and only for professional services rendered on behalf of the Named Insured. Regardless of the number of hours worked, if the Independent Contractor has his own coverage, no premium is charged to the firm. If the Independent Contractor does NOT have his own coverage, the firm is charged a premium to add the Independent Contractor to their policy.

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