Choosing the Right Attorney Malpractice Insurance Provider(s)
Choosing the right attorney malpractice insurer is an important decision for your firm. The following are helpful tips:
- Evaluate the whole program
Keep in mind the insurer is an important piece, but not the only piece, evaluate the entire program. Coverage and price are not the only considerations. Consider the insurance broker’s and insurer’s history, stability, risk control programs and long-term commitment.
- Assess the financial stability / A. Best Rating
You are buying ‘sleep insurance.’ So to be able to sleep well you need to know the insurer’s continued ability to pay claims.
- Consider the agent or broker’s relative experience
Is the broker or agent an insurance generalist? Or is the broker a specialist immersed in serving the lawyer firm’s insurance needs? What is the agent doing to stay involved in the legal community?
- Look for a commitment from the malpractice insurer
With claims-made coverage it’s easy for a new insurer to enter the marketplace. A new insurer may add policies quickly without regard to underwriting. They’ll write business until the claims start coming in and then leave the law firm high and dry.
Beyond the A.M. Best rating, research the insurer’s record and length of time in the attorney malpractice insurance business. Is this company going to be around when the going get tough?
What is the insurer’s claims philosophy? Do they fight to the death, or do they settle without a fight? Does the insurer claims department have specialized knowledge of attorney malpractice claims? Or is the claims adjuster managing a law firm’s’ claim a generalist managing other claims such as homeowners, personal auto or other types of malpractice claims.
- Weigh Your Options from a Relevant Coverage Standpoint
The policy needs to fit the needs of your law firm based on your areas of practice and other relationships. No two attorney malpractice policies are exactly the same. Make sure that the policy with the endorsements meets your firm’s needs Does the insurer or agent offer other needed coverages such as crime Insurance, cyber insurance, EPLI, BOPs, workers compensation coverage and bonds?
- Seek Out a Trusted Advisor
Even though you are concerned about the insurer’s stability, the agent can be an especially important component. An independent insurance agent/broker can provide additional insight as to which insurer best fits your needs or when it is time to change insurers. Your agent may outlast the malpractice insurers coming and goings. Have a trusted agent if your insurer decides to leave the market.
- Allow time to make your decision
Making an insurance policy decision on the 11th hour of the 11th day does not always result in the best decision. Take the proper time to complete all of the needed application information and make sure that the underwriter is as comfortable with you as you are with the insurer. Last minute surprises can be expensive. Surprises cause premiums to change, or coverage declined.
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Lee Norcross, MBA, CPCU
California License # 0D87292
L Squared Insurance Agency, LLC ® DBA in California as L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
Lee@L2Ins.com
616-726-7080
