top tips for purchasing legal malpractice insurance
TRANSCRIPT
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Top Tips for Purchasing Legal Malpractice
InsurancePresented by:
T. Scott Galloway, Esq. and Howard H. Collens, Esq.
Galloway and Collens, PLLC&
Theodore C. Nittis, Esq.Oswald Companies
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Picking a Broker Call once a year Be proactive during renewal Pick one broker who can go to
multiple markets Ask around for referrals
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Coverage Limits Not an exact science Risk Tolerance Benchmarking for small firms Areas of practice Size of cases handled – risk is not
for the entire deal
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Deductibles As a general rule – 1% of gross
revenues
How much will changing the deductible change the premium?
The value of going with a higher deductible – more skin in the game should result in lower premiums
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Selecting a Policy Components of the policy
Completing practice questionnaire
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When to Consider Switching Carriers
Risks when switching Making any possible claim known Loss Ratio
Advantages of switching
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Renewing
Step Rating – Capping the rate Asking for a loss run Notice for non-renewal Talking to your broker about “Plan B”
in advance Don’t over-market your policy
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How and When to Report a Claim
Be expansive Grey areas “Could reasonably give rise to a claim” Bad results or billing complaints = Not likely
a Reportable Event Bad result plus allegation of blame =
Reportable Event May include phone call, email, lawsuit,
grievance When to report but not seek coverage Grievances
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Opening Your Practice Lower premium costs that
increase over time
Are there any prior acts that need to be covered?
Avoid a broad list of practice areas on your website
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Adding Practice Areas
Risk of practice area – based on actuarial data
Dabbling – Don’t do it!
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Fee Suits – Don’t Do It Makes you adverse to client Opens you up to a counterclaim – including
malpractice Legal malpractice as a defense is a reportable
claim Cost of chasing the funds Wait for statute of limitations before initiating
suit Establish a minimum threshold below which
you will not consider filing Have another attorney handle the litigation Impact on future insurability?
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T. Scott Galloway & Howard H. CollensGalloway and Collens, PLLC
26075 Woodward Ave, Suite 200Huntington Woods, Michigan 48070
248.545.2500GallowayCollens.com
[email protected] Twitter: @howardcollens
@ProbateLawMI @RealEstateLawMI
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Theodore C. Nittis, Esq.Oswald Companies
39572 Woodward Ave Suite 201Bloomfield Hills, Michigan 48304
248.433.1466 OswaldCompanies.com