When a solo practitioner or law firm obtains malpractice insurance, they may do themselves a disservice by forgetting about their insurance coverage until they file a claim. Attorneys and law firms can better serve their needs and interests by periodically reassessing their legal malpractice insurance, rather than automatically renewing the same policy year after year. When should lawyers and firms review their malpractice insurance coverage?
Major Triggers for Reassessing Coverage
Lawyers and firms should reassess their liability coverage when they experience significant events in their practice, such as:
- Changes in Practice Areas – An attorney or firm that adds a new practice area or shifts into a different practice area should contact malpractice insurers to understand their coverage options.
- Significant Firm Growth or Structural Changes – Firm growth through adding new office locations, expanding practice scope to other states, hiring more associates, bringing in new partners, or acquiring or merging with new firms may require law practices to update their insurance coverage.
- Significant Changes in Client Base or Case Volume – Taking on more clients, complex cases, or switching to corporate or institutional clients should motivate firms to review their malpractice coverage needs.
Financial and Market Considerations
Various financial or economic factors that should also lead attorneys and law firms to review their legal malpractice coverage include:
- Rising Case Values – Lawyers and law firms should reassess their coverage needs when they begin taking cases with higher financial stakes, which can lead to larger settlements or judgments in malpractice claims.
- Premium Increases or Policy Market Changes – An attorney or firm may explore other insurance providers when their current insurer proposes to increase premiums for the next policy term or when broader market conditions may be decreasing premiums charged by different insurers.
- Renewal Periods – The approaching expiration of a policy should encourage lawyers and firms to reassess coverage rather than reflexively renewing an existing policy. A review at renewal allows attorneys to account for changes in case mix, firm size, or overall risk exposure.
Personal and Professional Circumstances
Lawyers might also consider reviewing their malpractice insurance under various professional or personal circumstances, such as:
- Contemplating Retirement or a Career Transition – When a lawyer considers retiring, taking a job in government or as in-house counsel, or leaving active law practice, they may obtain a “tail coverage” policy that continues to protect them for a few years after leaving practice.
- Building a Claims History – When an attorney or firm files one or more malpractice claims with their insurance carrier, they should reassess the adequacy of their coverage limits and how filing claims may have affected their insurance premiums.
- Changes in Professional Requirements – Although Wisconsin does not require lawyers to carry malpractice insurance, attorneys in the state may hold licenses in other jurisdictions that have minimum malpractice insurance requirements. State bars that do not currently have insurance requirements can change those rules down the road.
Contact WILMIC Today to Discuss Your Options
Attorneys and law firms should periodically reassess their legal malpractice coverage to ensure they have an affordable policy tailored to their current work and legal concerns. Contact WILMIC today for an initial consultation with our staff to discuss reassessing your legal malpractice insurance coverage to see if we can help you obtain insurance that better suits your legal needs and financial resources. Our team can walk you through available options, explain differences in coverage, and answer questions about limits, exclusions, or policy costs. We will work with you to determine whether adjustments could provide greater protection and value. Together, we can explore insurance solutions designed to better suit your legal needs, professional goals, and financial resources.