Protecting You Against Legal Malpractice Attorneys Omissions
What Drives The Cost Of Legal Malpractice Insurance?
Legal Malpractice insurance rates depend on issues that vary by company. You need to discuss your particular circumstances with an insurance broker in order to find the best rate for your particular needs. Get competitive quotes and remember, cheaper isn't necessarily better. You need to make sure that the insurance you're paying for actually covers the activities in which you operate.
The Factors That Determine The Legal Malpractice Rates You Will Be Charged Include:
Legal malpractice rates are determined by various factors, you should be aware of what they are if you choose to pursue a case.
- The limit of liability chosen
- The area of legal specialty involved
- Your personal claims history
- The state of the insurance market
- The deductible you are willing to pay
- Your geographic area and the litigation atmosphere in your locale
- Law office management
Malpractice Lawyer Underwriting
When underwriting or evaluating the risk of a particular malpractice lawyer, the insurance company will look at a variety of factors based on information furnished in the application. The underwriting criteria used by insurance companies varies from state to state and depending on the size and scope of the law firm. Here are some examples.
- Claims experience:
a. Number of claims or incidents per lawyer per year
b. Anticipated expense of these claims
c. Nature or quality of claims
d. The lawyer’s degree of fault
- Rejection or refusal to renew by any other carrier
- State bar disciplinary proceedings against said lawyer
- Lawyer’s predisposition to suing clients for fees
- Significant increase in limits or decrease in deductible
- Nature of practice
- Attitude and cooperation of said Lawyer
Sample Red Flags
The following examples offer some sample red flags for renewal risks that may be submitted to the company's general manager or underwriting committee for approval:
- Two or more claims within the past year
- Three or more claims within the past ten years
- Major claim
- Pattern of claims
- Uninsured for the preceding five years
- Non-payment of deductible
- Non-cooperation of insured
- Any bar disciplinary proceeding
- Existing business relationship with a client
- Maintenance of other professional licenses
