Top Tips for Purchasing Legal Malpractice Insurance

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

Picking a Broker Call once a year Be proactive during renewal Pick one broker who can go to

multiple markets Ask around for referrals

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

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

Selecting a Policy Components of the policy

Completing practice questionnaire

When to Consider Switching Carriers

Risks when switching Making any possible claim known Loss Ratio

Advantages of switching

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

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

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

Adding Practice Areas

Risk of practice area – based on actuarial data

Dabbling – Don’t do it!

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?

T. Scott Galloway & Howard H. CollensGalloway and Collens, PLLC

26075 Woodward Ave, Suite 200Huntington Woods, Michigan 48070

248.545.2500GallowayCollens.com

OutFromUnderMyHouse.comScott@GallowayCollens.com

Howard@GallowayCollens.com Twitter: @howardcollens

@ProbateLawMI @RealEstateLawMI

Theodore C. Nittis, Esq.Oswald Companies

39572 Woodward Ave Suite 201Bloomfield Hills, Michigan 48304

248.433.1466 OswaldCompanies.com

tnittis@oswaldcompanies.com