If you missed our June CLE on Legal Professional Liability Insurance, below you will find a copy of the outline as presented by Michael F. Skolnick of Kipp and Christian.
- I. Area of Practice Factor
- a. AOP as pricing consideration
- b. Plaintiff vs. defense
- c. Greatest areas of risk
- II. Premium/Deductibles
- a. Graduated premium with claims made policies
- b. Difference between claims made and occurrence policies
- c. Effect of prior acts coverage
- d. 5-6 year Amaturation@ process
- e. Loss only deductibles - no payment unless settlement or judgment
- f. Higher premium; less exposure for out of pocket loss on frivolous claim
- g. Higher deductible usually equals lower premium
- h. Make sure deductible is amount firm can comfortably handle
- i. Assume serious risk of claim every 2-3 years
- III. Firm Websites
- a. Underwriters will likely scrutinize
- b. Know what is on your website
- c. Representations about the firm’s experience handling high stakes cases
- d. Representations about AOP’s, which may not be identified in application
- IV. Applications
- a. Be thoughtful and thorough - app. incorporated as part of policy
- b. Will ask about conflict checking and calendaring
- c. Premium credits for well-conceived, redundant systems
- d. Will also ask about fee collection lawsuits
- e. Application provides opportunity to Aclean house@
- V. Levels of Coverage
- a. Policy limits dependent on risk
- b. If cannot cover maximum exposure at least cover equivalent of annual net income
- c. Discouraging plaintiff=s attorney from rejecting limits offer
- d. Per claim limit/aggregate claims limit
- e. Risk of multiple claims exposure
- f. Defense costs - independent of or inside policy
- g. Advantages of having costs outside policy
- h. Greater exposure equals greater cost of defense
- VI. Submitting Claims or Potential Claims
- a. Avoiding risk of non-coverage or policy rescission
- b. Consulting coverage counsel if questions arise about need to report
- c. Increased premium less expensive than non-coverage
- VII. Effect of Claim/Indemnification Payment on Future Premium
- a. Effects uncertain - up to underwriters
- b. Favorable judgment generally does not wipe slate clean
- c. Defense cost considerations/five year rule
- d. Generally small claims/low fees don=t have great deal of effect
- e. Factors outside your control - actuarial considerations, market factors
- f. Multiple claims may indicate high risk practice area or high risk practices
- g. Clients= demand for free or discounted services may constitute claim.
- h. Read claims reporting requirements in your policy
WELCOME TO THE UTAH DEFENSE LAWYERS ASSOCIATION: