Have you or any associated professional ever been involved in, or are aware of, any fee disputes including suits?

This question helps the insurance carrier evaluate your firm's risk profile by identifying a history of disagreements over fees. Fee disputes, especially those that escalate to lawsuits, can be a leading indicator of client dissatisfaction or poor communication regarding compensation. This history suggests a higher potential for future Errors and Omissions (E&O) claims, as a client unhappy about fees is more likely to scrutinize performance and allege wrongdoing.

• What is a "Fee Dispute"? Any disagreement or conflict with a client over the amount, structure, or payment for your professional services. This includes everything from an angry phone call about a bill to a formal lawsuit.
• What does "Involved in, or are aware of" mean? "Involved in" means you or an employee were a direct party to the dispute. "Aware of" means you have knowledge of a fee dispute concerning your firm, even if you weren't directly part of the disagreement.

To answer this question, you must disclose any instance where a disagreement over fees for your professional services has occurred.

• Review History: This applies to the entire professional history of each person at your firm.
• Broad Scope: The question covers disputes you were directly involved in and any you were simply aware of within your firm.
• All Disputes: You must report any fee dispute, regardless of the outcome. This includes verbal disagreements, written complaints, or formal lawsuits, even if they were settled, withdrawn, or dismissed.

If any such event has occurred, you must answer "yes." If not, you can answer "no."

• Mistake: Thinking that only formal lawsuits count.
  • The question explicitly includes all "fee disputes," not just suits. A documented history of angry client emails or letters arguing about your fees must be disclosed.
• Pitfall: Believing that if the client was wrong, the dispute doesn't matter.
  • The outcome is less important than the fact that a dispute occurred. It still indicates a breakdown in the client relationship that is relevant to the underwriter.
• Mistake: Forgetting to ask employees about their history at prior firms.
  • The question applies to an associated professional's entire career. Your firm's compliance process should include asking new hires about any history of fee disputes.