About Lawpro Coverage
Lawpro boasts coverage on their regular policies of up to $500,000.00 for return of funds on fraudulent transactions, however, the requirements that they ask for firms to follow are very unreasonable and very difficult to implement.
How Law Firms Qualify
To qualify for reimbursement on their coverage, a firm needs to have funds deposited into their trust account for 8 business days before disbursing. With the nature of real estate closings, it isn’t possible to have funds deposited into trust for 8 business days because of last minute changes to payout figures, and many banks are refusing to verify drafts as they do not want to accept responsibility.
Coverage Requirements
Below is a link to the Lawpro website outlining the requirements. One suggestion made is to utilize the Large Value Transfer System (wire transfers), for accepting funds as these cannot be pulled back once delivered. This may be a solution for accepting funds from other lawyers, but does not work for receiving funds from clients because of having to release trust account information for this to take place.
