ALPS 411

By Robert W. Minto, ALPS CEO, robertminto@alpsnet.com
 

It usually follows that when the wind blows the insurance market acts accordingly. Bracing itself the market hardens and prices go up. It's logical; repairing wind damage costs money and insurance prices increase to cover those costs. The wind blew in 2011 and early 2012 so we should see firming in property and casualty pricing in the next renewal cycle. What does the wind have to do with Lawyers Professional Liability Insurance (LPLI)? Technically nothing, but practically everything. LPLI is a subset of Casualty Insurance and is dependent on the same reinsurance sources as the general casualty markets. In other words, the industry as a whole floats on the same tides.

In Theory

The...

When discussing past malpractice claims or disciplinary matters with attorneys, I often hear statements along the lines of “I knew I shouldn’t have agreed to take that client on” or “That was one of those no good deed goes unpunished situations.” Effective risk management begins with client screening, and those statements strongly suggested that there was room for improvement in that area. If the above statements ring true for you now and again, regardless of whether a claim or complaint ever arose, consider taking some time to reflect upon your own client screening practices.

While I believe that most attorneys are skilled at screening potential new matters, not as many are as effective when it comes to screening potential new clients. Yes,...

We’ve all seen the ads. Don’t buy from the little guy when the big boys have so much more to offer. Of course, how many of us truly foresaw AIG’s troubles, the bankruptcy of GM, the collapse of Lehman Brothers, or that even a few large insurance companies would buy small banks in order to qualify for TARP funds in order to shore up the books. I don’t know about you, but I was not exactly pleased about the size of all those government bailouts. As I see it, big definitely doesn’t equate with better, more secure, well managed or anything else. Big is just that, big. I’m not impressed by the size of any particular corporation. 

But wait, the big boys then follow up with ads that promise the best price. It’s the old “We won’t be undersold!” song...

Several years ago, I attended an ALPS CLE and noticed many attorneys using mobile devices with styluses. Now a mobile device is nearly required legal technology, and I wonder if some lawyers miss the stylus.

For those who do, the stylus strikes back with Samsung’s new Android phablet (phone/tablet hybrid.) Yes, the large dimensions of the Galaxy Note make it look like a caricature of a cell phone. Thankfully, it can be used with an earpiece or speaker phone to avoid ridicule. The device is designed to be a small tablet rather than a phone—a digital notebook as the name indicates.

Everyone’s favorite acetic technologist, Steve Jobs, put an image of a stylus up in an iPhone presentation and proclaimed, “Who wants a stylus? Yuck!” But, despite...

To describe the 2011 year from the claims perspective one would have to use words like challenging, exigent, disappointing, and painful. It was a year that saw attorneys around the country being challenged by clients and non-clients for the professional services they rendered. A sign of the times, these individuals or companies were attempting to abate their own losses largely brought on by bad economic conditions. As might be expected in a tough economy, people often seek a deep pocket to try and recoup losses. Unfortunately, lawyers are near the top, if not at the top, of the deep-pocketed list. Interestingly enough, a recent Wall Street Journal article focuses on this very trend.

ALPS experienced what most in the lawyers’...

For the ALPS underwriters, 2011 proved to be a very interesting year. As in years past, we experienced new carriers entering some of the states where we do business, while other carriers left some of those same states due to adverse claims developments. Competition remained fierce throughout the year even though claims frequency and defense costs appeared to be climbing industry-wide.  Predictions of a hardening of the insurance market were heard more often, however the market remained soft. Overall our continued coverage premium remained strong and the acquisition of new policy premium was successful.

ALPS has a strong advantage because of our esteemed underwriting staff. Comprised of eight seasoned and experienced professional liability...

Entering its third year as a member of the ALPS family of professional services, First Lawyers Trust Company has certainly witnessed a growing demand for the services that it provides as an independent corporate fiduciary. First Lawyers is a nondepository trust company chartered under the laws of South Dakota. It’s not a bank or an investment manager. In fact, its only business is fiduciary administration with a mission to empower lawyers and other trusted advisors to better serve their clients.

In the past six months, First Lawyers Trust has formed strategic partnerships and has taken on some interesting projects. In the fall of 2011, it partnered with Insurance Trust Monitor (ITM), the nation’s largest and most experienced administrator of...

As the Social Media Community Manager for ALPS, I cruise a lot of law blogs (blawgs) and discussion groups each day. Over the last couple of months I’ve been paying particular attention quite a bit to comments about smartphone applications for lawyers.

These applications run the gamut of document management to tracking billable hours and beyond. Whether if you’re an iPhone user or a proud proponent of Google’s Android smartphone, there’s an app or apps out there for the seasoned lawyer, the solo startup, or the law student.

Below you’ll find what my research has shown to be the most popular and/or offers the most functionality for the mobile legal practitioner using iOS or Android based apps. There are hundreds that can help lawyers increase...

First of all, thanks to the great folks at ALPS for the kind invitation to post here at the ALPS411 blog. I've been a reader for a while, particularly since I set up a solo law practice almost 2 years ago. Since that time, I've had my feet firmly planted with one foot on the ground and another in the cloud.

(Quick Aside: If you are looking for a post on cyber securtiy, client confidence issues, or other tech oriented  thoughts about the "Cloud" as it relates to the practice of law, this is not the post for you. There are many wonderful posts here at the ALPS 411 blog for that and I commend them to you.)

While that last statement could be (properly) interpreted as my being happy with the move and the better work/life balance that I've achieved...

I have always been blessed with excellent vision. In fact, I used to play a game with my kids, which was basically to see who could first read a sign in the distance. I never lost that one; but they kept trying. Of course, and as is to be expected, presbyopia finally settled in. While I still have great long distance vision, trying to read a wine list in low light has become more than a mild irritant and I’m rather frustrated about that. If that weren’t enough, well, let’s just say the kids feel like their comeuppance has finally arrived and a little ribbing comes my way now and again. That’s ok; I’ll still claim them as mine. Now, a fair question might be what does this have to do practicing law? The answer is quite a bit actually. 

Let me...

Recently one of ALPS' Claims Attorneys, Mike Flaherty, presented to the Knoxville Chapter of the ALA on the issue of suing your clients for fees. I developed content for that presentation and heard from Mike that the session was well attended by ALA members. In fact, Mike was slated for a 30 minute presentation, but because there were so many questions, he stayed for a full hour. Obviously this is a burning topic for legal administrators and attorneys right now. I’d like to share my tips on this issue to help you avoid the risks that are incurred if you are faced with suing your clients for fees. In addition to the tips below for collecting your fees, take a look at ALPS Risk Management Report on Billing and Collection.

Suing your client for...

Some attorneys still ask about how to purchase a tail policy or tell me that they have purchased a tail policy to cover their retirement years. Truth be told, there is no such thing as a tail “policy;” and unfortunately, this type of confusion over what a tail is and what it isn’t can lead to serious repercussions down the line.   

Prior to discussing tail coverage, one must first understand a few malpractice insurance basics. All legal malpractice insurance policies are claims-made products. When a claims-made policy is purchased, the attorneys named under the policy will have coverage for claims that arise and are reported to the insurance company while that policy is in force. Further, and this is important, any act, error or omission...

Stakeholders of law firms are often taken aback when they learn they are responsible both ethically and civilly for those individuals working in or for their firm, including their fellow stakeholders. A complete analysis of how and why is beyond the scope of this article. Suffice it to say, you may not be as safe as you think you are.

We often hear attorneys say, “the laws of our jurisdiction limit the liability of stakeholders or partners thereby insulating us from personal liability for the negligence of the other attorneys in the firm.” This generalization may be technically correct, but more times than not, it creates a false sense of security among firm owners which leads to complacency or inattention to the very important duty of...

Websites, every business needs one, and lawyers are no exception. Websites are in wide use within the legal profession and for good reason. After all, who takes the time to pick up the yellow pages anymore? Many homes have even opted out of receiving the yellow pages all together, ours included. Prospective clients routinely search out lawyers on the internet and visit their websites. And for business development and marketing reasons lawyers want prospective clients to be able to contact them directly. As lawyers, however, we need to be aware of the potential risks a web presence can create that can lead to problems down the road. One common misstep that we repeatedly see is the posting of individual attorney e-mail hyperlinks on a firm’s...

On March 9, 2012 a diverse group of experts in the legal profession will gather at the DoubleTree in Missoula for a full-day Continuing Legal Education seminar entitled “From the Courtroom to the Classroom: A Multi-Dimensional Look at the Legal Profession in the 21st Century.” Headlining the event is world-renowned trial lawyer and educator, Ed Moriarity. Born in Butte, Montana, Mr. Moriarity has practiced law for nearly four decades in the American West. He started his practice in Cheyenne, Wyoming and went on to work with famed trial lawyer, Gerry Spence, as a partner in his Jackson Hole firm, Spence, Moriarity & Shockey. Mr. Moriarity and Mr. Spence worked together on many high profile cases, including the defense of former Filipina...

The perception of attorneys in the US is dismal. The perception of the legal profession in the US is unfortunately unfavorable in general. A 2007 Gallup Poll looking at “unfavorable attitudes” showed that only advertising executives (58% highly unfavorable) and lobbyists (42% highly unfavorable) fared worse than lawyers (35% highly unfavorable). This is a bleak state of affairs that has not improved in recent years. In 2011 another similar Gallup Poll, which looked at “positive perception” showed similar results concerning the relative ranking of attorneys. Nurses (84% positive) and doctors (70% positive) rated as the most highly admired professionals while Lawyers (19% positive), lobbyists (7% positive), congressmen (7% positive), and...

Let's start with a reminder. The people who use your firm's computers, which includes portable devices such as smart phones or computer tablets, represent a significant risk not only from things like their falling prey to a phishing scam but to intentional misuse. One effective risk management tool that can help address this concern is a well-written online activity policy that is coupled with education and enforcement.

The establishment of rules regarding personal use that address such issues as personal browsing on the Internet, the use of peer-to-peer file sharing networks, personal email accounts, file downloads, and use of social media are of particular importance. Detail ownership and privacy ramifications so that everyone in the firm...

Professional liability insurance policy is provided on a claims-made basis, and not the more common occurrence basis. One significant difference between claims-made and occurrence policies is the timing required when making the claim. Claims-made insurance requires that a policy be in effect at the time the claim is made regardless of when the act, error or omission occurred. (Of course, this assumes the error in question occurred after your loss inclusion date or retroactive date for your current claims-made policy.) For occurrence based insurance to cover a loss, the act causing the harm had to occur during the policy period. In claims-made insurance, it is the report to the carrier that triggers the carrier’s duty to indemnify―not the...

Have you ever stopped to think about why your Internet security program updates on a fairly regular basis or why Microsoft, Apple, Adobe and other software companies release patches with similar frequency? The reason is that for all practical purposes computer security is something of a reactive defensive play. Internet security suites defend your computer or network from known and understood attacks. Once there is a new virus or other nasty program released by some cybercriminal, software and computer security companies investigate the malware and write code that will protect you from this new threat. Here is the problem. We all are potentially exposed to new and unknown attacks particularly if the computers that we're using have not been...

Note: “Getting Started Solo,” a new 38-page white paper by the ALPS Risk Management team, is available for free download at the Above The Law Resource Corner. It just takes 10-seconds to register and then you can select to start the download (PDF format). Click here.