26+ Attorneys

Midsize firms of, say, 26-75 or more attorneys, face their own unique set of issues when designing a comprehensive and cost-effective professional liability insurance program. While some larger firms focus on one or two specialized areas of the law, most firms of this size seek to provide their clients with a broad range of practice areas. Even if a firm maintains a primary focus on a particular practice specialty, offering in-firm access to a wider breadth of resouces and help ensure that the firm meets all the client's legal needs. While this strategy can build and stengthen client relationships, such a broader practice exposure brings with it the potential for increased liability.

Most midsize and larger firms have sufficient capital to allow greater flexibility when designing and implementing a professional liability insurance program. The ability to retain a higher level of risk through increased deductibles can help reduce the premium, and thereby allow for the purchase of higher catastrophic liability limits. Sometimes an insurer will agree to have the firm handle low-value, “nuisance” claims on their own, with limited involvement by the carrier’s claims department.

A number of important issues must be considered:

• How are lateral hires handled?
• Will the new attorney(s) be provided with prior acts coverage (sometimes referred to as "career coverage") or will they be offered coverage only from the point at which they join the firm?
• How will the firm handle "Of Counsel" relationships?
• Is the firm leasing some of its own space to other attorneys or firms? These arrangements must be reviewed from a risk management standpoint.
• As the firm’s size increases, its own information technology and other security issues become a significant liability exposure.

Once they reach this size, many firms hire a full time administrator who manages the firm’s day-to-day operations. This allows the managing partners or management committee to focus on other important issues like client acquisition. Human resource issues also require greater focus, and more and more firms purchase employment practices liability (EPL) insurance, as well as implement formalized employment guidelines and employee handbooks.

Office insurance coverage becomes even more important as the firm invests in larger, more sophisticated technology, along with higher-quality furnishings and fine art that many firms feel project the proper image to their growing client base.

The larger your law firm grows, the more critical it becomes to establish an ongoing working relationship with an insurance broker who can assist you in all aspects of risk management throughout the year, not just at policy renewal time.

At Earhart Leigh Associates, Inc., we have both the expertise and excellent relationships with our underwriters to ensure that every one of our client law firms receives the individualized attention that they deserve.

Don't settle for anything less! If you are the managing partner or administrator of a firm with 26 or more attorneys, give us a call today, and let's discuss your needs. All inquiries are held in the strictest confidence, and are without any obligation on your part.