Is Your Legal Malpractice Insurance in a Good Place?
Are you approaching the renewal of your malpractice coverage? I wanted to share some valuable information that I have come across in the last few months. When I speak with a firm and the person responsible for malpractice coverage, the underlying theme is whether the firm will save money by switching. While this is a valid thought, it's important to note that it is not a good idea to purchase lower coverage in an effort to save on premium.
When considering malpractice renewal, I encourage you to consider coverage. For example, while ALPS may not be the lowest-cost carrier, we offer very comprehensive coverage that is competitive on premiums. Here are some things to keep in mind while considering your options.
- Compare the policy you have with the policy ALPS is offering. Many firms are not aware of what they do and don’t have in their policy, so it's crucial to review your options.
- Understand Defense Costs inside and outside your limits. ALPS often offers defense costs outside of the per-claim limits, which is a valuable coverage option for firms. This is a somewhat unique option that you may not find with all carriers.
- Consider First Dollar Defense. First Dollar Defense (FDD) is a benefit with minimal cost in premium but significant potential savings for the firm. For instance, if a claim is reported, and you have FDD coverage, ALPS will defend the claim from the first dollar, protecting your deductible. The firm will only pay the deductible when it is determined that judgment is made based on the claim and there is money owed. If the claim is frivolous, the firm pays nothing. Here's a short video definition of FDD.
It's the little things that separate one malpractice carrier from another. The two policy benefits listed above can add up to significant savings for the firm, not just on premiums but also on claims payment. If you're interested in learning more about what goes into the cost of your malpractice insurance, we have a handy download to help.
As you come upon your annual renewal, make sure you review your current policy for these options. Find out if your current carrier offers them and how they price this coverage. If they don't, and you feel that your firm is not adequately protected, reach out to ALPS. Again, these seemingly small features can make a big difference between a positive claims experience and a frustrating one.
Authored by: Mick Heard, Business Development Representative
Originally from Florida, Mick Heard is an honorably discharged Air Force veteran, and prior agency owner with 15 years of commercial insurance experience, with a background in commercial finance. As an ALPS Business Development Representative, Mick uses his experience to quickly problem solve and address any concerns you may have. His Air Force service taught him to be steady, to always focus and that perseverance pays off.