First Dollar Defense (FDD)

Similar to other lines of insurance, an LPLI policy is issued with an insurance deductible amount that is the responsibility of the Named Insured. If you want to avoid paying an insurance deductible for a frivolous claim or a defensible claim for which you have no liability, then ask ALPS whether you qualify for a First Dollar Defense or FDD endorsement.  When you report a covered claim to ALPS, we will fulfill our promise to provide you with a defense of the claim. The cost to defend a claim is generally subject to your deductible, which means you would be responsible to pay the initial defense costs up to the amount of your deductible. There is an additional legal malpractice insurance cost when you purchase an FDD endorsement. Once purchased, however, you are NOT responsible to pay for any defense costs up to your deductible. Instead, ALPS will pay the “first dollar” of defense and you will only be responsible to pay your deductible if ALPS pays an actual loss under your legal malpractice insurance policy.