Why Does My Attorney Malpractice Insurance Cost More Than My Friend’s?

Why Does My Attorney Malpractice Insurance Cost More Than My Friend’s?

Two attorneys practice the same type of law, yet one pays twice as much for attorney malpractice insurance. Why?

Although their practices may appear identical, insurance companies evaluate key factors when determining attorney malpractice insurance premiums. Even minor differences impact premiums.

8 Factors That Affect Attorney Malpractice Insurance Costs

1. 1. 1. Areas of Practice: Insurers charge different premiums based on the types of legal services attorneys provide and their associated risks.
      2. Prior Acts Coverage: Attorneys with full prior acts coverage generally pay more than attorneys with only one or two years of coverage because the policy potentially covers a longer period of past work.
      3. Policy Limits: Higher liability limits and claims expenses outside the limits (CEOL) can increase premiums.
      4. Deductibles: Higher deductibles, lower premiums. First-dollar defense and aggregate deductibles increase premiums.
      5. Hours Worked: Part-time attorneys qualify for lower premiums than full-time attorneys.
      6. Risk Management Procedures: Strong calendaring systems, conflict checks, and internal controls reduce malpractice risks and increase the insurers willing to consider writing risk.
      7. Claims History: Prior malpractice claims, disciplinary matters, and lawsuits against clients for unpaid fees can increase premiums.
      8. Insurance Carrier: Each insurer uses different underwriting guidelines, rates, and risk appetites. Consequently, premiums can vary significantly between carriers.

How Can Attorneys Lower Their Malpractice Insurance Premiums?

Compare quotes from multiple insurers, maintain effective risk management procedures, and review their coverage limits and deductibles. However, the cheapest attorney malpractice insurance policy does not always provide adequate protection. Compare coverage terms, exclusions, limits, and deductibles not just premiums.

At L Squared Insurance Agency, we help attorneys evaluate their Lawyers Professional Liability Insurance options and find competitive coverage that meets their needs.

Contact L Squared Insurance Agency at 866-940-1101 to review your attorney malpractice insurance coverage and premium.

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Lee Norcross, MBA, CPCU
California License # 0D87292
    L Squared Insurance Agency, LLC ® DBA in California as L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
Lee@L2Ins.com
616-726-7080