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BarJournal                   INSuRANCE LAW


                                     JULY/AUGUST  2015
      fEaTUrE        myths and Tips about lawyers






                    Professional liability Insurance





                                                                                              BY GAYLE HAASE



        Working with several insurance Brokers,  need to get an “agent of record letter”. Ohio Bar   It can be advantageous using referral resources
        Insurance Agent or going direct to the   Liability Insurance Company (OBLIC) is one   for areas of practices National Association of
        company will result in better rates. MYTH: If   direct writing company otherwise you typically   Elder Law Association (NAELA) or Cleveland
        you dial around from agent to agent or contact   want an agent to assist you. Most programs are   Metropolitan Bar Association (CMBA) for a
        the companies directly thinking this is the best   seldom delivered to you directly so it’s best to get   lawyer with a specific expertise area of practice.
        way to price shop you’re wrong. In most cases   comfortable and trust your agent or broker to   My experience is “dabblers” will get base rated
        it will actually be counterproductive wasting   assist in the process of shopping around for you. In   quotes and expertise law firms will get extra
        time for everyone. It wastes time for you the   the end everyone has a higher success rate with the   credits for being a desirable risk for underwrites
        applicant filling out multiple forms, it wastes time   communication with your current agent asking   which leads to best pricing and a competitive rate.
        for AGENT/ BROKER sending in a request for   for assistance to shop around. In fact most good   Lastly, record keeping is a key component because
        a quote to to the company Underwriters to find   agents want to keep pricing competitive and will   the firm should use the past twelve months
        they are block by a previous submission. Finally   offer to take your application out to a few other   revenues and break it down by area of practice
        it wastes time for the UNDERWRITER either   programs to see the going rate. If it makes sense   during the annual lawyers professional liability
        writing back giving the agent the news they can’t   to make a change to a new carrier your agent will   application process.
        quote because of a prior submission and now   help guide you through the seamless process of
                                            switching to assure continuous coverage.   Everybody wants to avoid having claims,
                                                                               but sometimes life happens and you have to
                                            Signing “Agents of Record” letters will get me   submit a claim. Should I not report a claim
                                            better pricing. MYTH: An agent of record letter   to try handling it myself for fear it will
                                            simply tells the underwriter to transfers all the   increase the premium and you might get
                                            work done by the originating (first in) agent it   non-renewed. MYTH: Don’t hold back, always
                                            to be released to your newly assigned agent and   report all incidents, grievances and or claims as
                                            pricing will be identical.The only way pricing   soon as they happen because otherwise a claim
                                            changes is if there is new information submitted   could have a chance of be denied. Lawyers
                                            that differs from the previous submission. The   professional Liability Insurance is a “claims
                                            process can be very confusing and at times   made reported” form. An incident may or may
                                            I’ve seen situations where the agents of records   not result in a claim but it does two things : First
                                            mistakenly signed need documentation now   it date stamps the matter so IF in the future the
                                            for a rescinding agent of record letter. It’s a total   situation escalates you have put the company
                                            hassle for all parties. Again, it is to your advantage   on notice at the beginning of what has started
                                            to get a trusted agent who’s experienced and let   and it’s on record. Secondly, there is a good
                                            them handle the process start to finish.   chance your policy has risk management help.
                                                                               Contact your lawyers professional liability
                                            Smattering the firm’s Area Of Practice   agent and they will know which companies
                                            percentage all over the board is best because   have these features as part of the policy Risk
            OVER 25 YEARS OF
                                            our law practice is general law practice. MYTH:   Management Consulting helplines to help
            PERSONAL INJURY,                Being everything to everyone can be challenging   guide your firm in a situation. Bottom line it’s
            MEDICAL MALPRACTICE,            so try to target a few areas of practice and specialize   important to report all incidents to help before
            AND AUTO / TRUCKING             the attention to becoming a trusted advocate in   things escalate. It is possible that the insurance
            CASES                           theses fields of law. Generally applications with   rates may increase but the price of a declined
                                            1%, 2% 3% are viewed as “dabblers” and when it   claim will result in thousands more along with
                                            comes to the law you don’t dabble. Dabbling will   a headache stress of being non-renewed for not
            216.223.7535                    get you into trouble and cause mistakes, which   disclosing the matter timely. It’s always better to
            ROBENALTLAW.COM                 lead to claims. Attorneys finding their niche and   conservative, reaching out for help because this
                                                                               will acknowledge the all important time line for
                                            expertise are more attractive to underwriters than
                                            law practices dabbling in various aspects of the law.    a claims made policy to work for you.
      18 |  Cleveland Metropolitan Bar Journal                                                    clemetrobar.org
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