Embroker’s Law Practice

Redefining the way law firms purchase insurance, utilizing technology and deep insurance expertise from brokers who genuinely understand the industry.

The spectrum of risks that law firms face today, as well as the continually changing insurance market, requires more than a transaction-oriented approach to risk.

With a combination of industry-leading technology, expertise and market access, Embroker is one of the fastest-growing legal malpractice insurance practices in the country. We leverage our proprietary technology, expertise, and relationships with leading carriers to help law firms frequently save 20 percent on their total cost of risk.

We wrote this guide to help you, the reader, understand both the basics of law firm insurance as well as some more advanced considerations. Our hope is that you walk away from this article a more empowered buyer, with a better understanding of the risk you can transfer to other parties via insurance products tailored to law firms.

Our experts can work with you to secure an insurance program that is tailored to your business. We’ve digitized and streamlined the renewal process, so law firms no longer have to compile a yearly application or search for policies. Our risk management platform securely stores and allows for easy access to all of your insurance policies, certificates, claims and more, to save you time. These reasons and more are why Clio has appointed Embroker as their preferred insurance brokerage for law firms.

If you’d like help, we’d invite you to talk with a broker or get started by creating an Embroker account.

Insurance For Law Firms

At some point each year, your law firm endures the unsavory ritual of having to purchase or renewing its insurance. Each year means another application to fill out and each application means more time and energy away from running your business.

Why is it that buying insurance is so obscenely difficult, confusing, and expensive — especially for law firms? Could it be that most firms are underserved by their current insurance brokers? Maybe, but we’ll get to that later.

Today’s legal landscape is incredibly complex, which is why attorneys and law firms need professional advice and assistance when it comes to buying insurance, in order to make sure that their coverage is giving them the best possible protection from all possible risks.

What types of risks can insurance help lawyers mitigate? The most notable is legal malpractice (after all, practicing law get riskier as society gets more litigious).

Malpractice suits are only the tip of the iceberg. Just like all other businesses, law firms have clients and employees, which means that law firms need to be protected from a vast variety of risks that aren’t very different from the risks that businesses of any other industry face and are protected from with the help of insurance.

In today’s day and age, cyber liability and cyber crime are a close second, and also necessary to protect.

Adequate protection from a claim, warranted or not, can help ensure financial security, success, and longevity. Law firms, therefore, need to insulate with an impeccable risk management plan.

How to Find the Right Coverage for Your Law Firm

The best way to insure your law firm is to do it carefully and with the guidance of real experts who not only understand business insurance but also understand the needs of your industry. Not every law firm needs the same policies and there are many factors that go into deciding what type of coverage your law firm really needs.

Research is vital when it comes to getting the right coverage and you can really never be too careful about what types of policies you are purchasing. Make sure that you have an understanding of the limits and rules of the policies, what they entail, and what needs to happen in order for the coverage to be activated.

Since you are an attorney or a team of attorneys, be sure you understand what the policies offer you in terms of representation. Can you represent yourself or does the policy require you to use a third-party law firm to handle the claim?

Bottom line, make sure to be as informed as possible about what you are purchasing before you send the check.

Things to Consider When Buying Coverage for Your Law Firm

A lawyer’s premiums go up as their exposure to risk and claims increases.

A new attorney has a short legal history and therefore is less likely to have a claim made for past legal services. Experienced lawyers, on the other hand, tend to be more vulnerable to errors due to a complexity of cases, a longer history of cases, and generally higher stakes. According to the American Bar Association, lawyers in private practice for five years or less are targeted in about 3.5 percent of malpractice claims, compared to 37 percent for attorneys with 11-20 years of experience. This surprises many lawyers as they view themselves as a more competent attorney after experience.

When you recruit an experienced attorney to work at your firm, expect your firm’s insurance rates to increase. Also, the attorney billing 1,500 hours is far more prone to claims than the Of Counsel (OC) billing 600 hours. Some insurance carriers might even covered your part-time attorneys without charging you for the coverage.

Eventually, your rate per attorney becomes “mature” and each additional year of experience does not affect the premium. But don’t wait for that to happen. You can reduce premium costs right away by having a broker negotiate with carriers so that you are certain you’ll achieve the best deal year after year with little work involved on your end. A savvy broker who understands carrier underwriting is able to work these nuances in your favor.

Lawyers can be highly exposed to gaps in their insurance coverage for professional liability and other lines. Leaving gaps in their coverage is one way in which brokers often fall short of serving their clients, especially if they are inexperienced when it comes to finding the right insurance for legal professionals.

Is your broker willing to handle all lines of coverage for your firm? Having a broker who specializes in law firms provides you the confidence of leaning on them to properly cover all insurable risk factors at you firm. Make sure your broker can identify the gaps on your behalf with multiple insurance carriers and appropriate policies.

Highly-Publicized Examples of Insurance Claims at Law Firms

Related: Common Mistakes That Can Lead to Legal Malpractice Claims

The Cost of Insurance for Law Firms

Not sure if you’re getting a fair deal?

A frequent question we hear — and a common problem with insurance underwriting in general — is that no one really knows how an underwriter arrives at a premium.

A law firm’s premiums are usually determined by number of attorneys, areas of practice, location, and claims. Most firms acknowledge this, but they still rarely understand how the price is actually derived.

It’s important to note that cheaper doesn’t mean better and the only thing that is important is that your insurance program is covering the activities of your practice in the best possible way.

Your prior claims experience is another factor that’s important when it comes to determining your law firm’s premiums. Here it’s not only just about the number of claims but also how much your claims cost, the nature of the claims, and the degree at which your law firm was at fault in these claims.

It’s easy to calculate the cost of your insurance merely by premium dollars. But what about time spent on applications and the process itself? Or what the true cost will be if your claim or defense isn’t covered? Embroker’s technology will make buying far easier and our brokers will ensure your quotes come from the most well-respected carriers.

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Getting Started

Lawyers and their firms require unique insuring expertise and experience from their brokers in order to make sure that they are getting the proper coverage and that all possible gaps are being covered.

Embroker’s combination of dedicated, expert brokers with years of experience finding the right coverage for law firms and industry-leading technology can help you get the best coverage at the best price. Beyond that, we also offer advice on risk management challenges such as loss control and risk financing.

If you need more help or information, you can reach out to our team of expert brokers. If you prefer to get started on intelligent quotes, create your Embroker account today.

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