Every law firm is different in terms of specialty practices and risk profile. The firm’s size in revenue, client mix and number of lawyers will impact liability insurance pricing. Additionally, many of these factors are moving parts that can change from year to year. Law firms can grow and, even compress, as the economy evolves. Areas of practice, measured as a percentage of billable hours can vary, sometimes quite dramatically. All these components influence your firm’s insurance profile and impact your annual premiums.
Bromfield suggests that the following questions can be of great value to law firms seeking adequate coverage and protection as well as helping you find right carrier fit. For a one-page “Bromfield Insurance Risk Analysis Checklist” that covers all of the below in a recordable format, Click here.
- Number of Attorneys – Have you brought on new lawyers that have increased or decreased your risk profile/exposure?
- Personal Assets – How protected are your personal assets from a Professional Liability claim?
- Practice Mix – Have you grown your practice into new areas that have changed your insurance profile?
- Policy Knowledge – Have you actually read your policy recently and does it provide the coverage your firm actually needs?
- Carrier Qualifications – Does your law firm and/or your agent/broker help you evaluate current and future carriers for financial strength and ability to pay your claims?
- Legal Malpractice – Do you have sufficient legal malpractice insurance dollar limits to cover your full attorney team as well as paralegal associates?
- Claim Experience – Are any of your current practice areas historically prone to significant rejection of claims from carriers such as court injunctions or criminal action?
- Carrier Evaluation – Is your area of practice properly evaluated by your insurance carrier? Are you paying too much?
- Coverage Limits – What is the proper amount of liability coverage given your practice areas and day-to-day matters that you conduct?
- Agent Motivation – Is your current agent or broker working for your law firm or is his/her motivation earned commissions?