It is not always in the best interests of a solo attorney to switch attorney malpractice insurance carriers if they are close to retirement. The savings of a couple of hundred dollars could cost them thousands of dollars later. See below for the attorney's inquiry and L Squared's response:
Information from attorney
I received your inquiry regarding lawyer's professional liability insurance sometime ago. I recently went through a renewal of my policy with Zurich North America through Daniels Head Insurance Company. I have been with their company for many years and they have always seemed to treat me well. Recently, however, I see insurance premiums that do not seem appropriate, compatible or reasonable. I'm interested in finding out more information about your lawyer's professional liability insurance, including prior acts coverage. I will not be making any changes until approximately this time next year but I do not want to wait until the last minute to get things in order if I determine to make a change in coverage.
Any information that you could provide to me would be greatly appreciated.
Response from L Squared Insurance Agency:
Thank you for your inquiry about possibly getting a quote for your professional liability insurance. There is really not much information that we can provide until we get closer to your expiration date as most of the insurance carriers we work with normally will not quote until we are closer to your expiration date.
In looking at your information on the state bar website, I note that you might be getting close to retirement. Many malpractice insurance carriers offer retirement or non-practicing Extended Reporting Period Endorsement (ERP) for an attorney that has been with the same insurance carriers for a set number of years. You might well have already qualified for that option with Zurich. If you switch to a new carrier, you likely will need to spend at least 3 to 5 years with that new carrier to qualify for the “free” non-practicing Tail or ERP. Note that if you do switch to a different carrier, you would still have the right to purchase an ERP from that new carrier, but it can cost 3 to 5 times the inforce premium and you lose the right to receive the non-practicing ERP from Zurich.
While we always like to write new business, your situation may not be one where it would be in your best interests to switch attorney malpractice insurance carriers.
If you still would like to get a quote near your expiration date, we would need our indication form completed and sent back. With this we can provide you a quote at around 30 days prior to expiration. Or as an alternative, just let us know your policy expiration date and we can contact you closer to that date.