“I
knew I shouldn’t have taken that case.” Unfortunately, this is the
statement we hear all too often when an insured attorney reports a
malpractice claim to ALPS. In light of that fact, this article will
encourage you to listen to your own judgment when determining
whether or not to take a case and emphasize the importance of
appropriate client selection and file opening procedures.
Hindsight offers the benefit of much clearer vision when reviewing a file. This is particularly true in legal malpractice cases. Appropriate client selection and file opening procedures are important risk management tools that you can incorporate into your law practice. Not only does this enhance work satisfaction, we believe that it can provide your clients...
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In
a previous column, we described some of what an underwriter does as
they try to find an appropriate match of risk and premium. Yes,
there is a science to underwriting – The Law of Large Numbers,
actuarial statistics, etc. But there’s also an art to it. We are
not Robo Underwriters who simply plug numbers into a formula, hit a
button and wait to see what premium is spit out. We have to
consider factors that are not quite as quantifiable. For example,
if a firm has claims, we would need to know more than just how many
claims. We look further to understand the severity and the
frequency of claims, the practice areas they fall under, the
attorneys involved and so on. Instead of just knowing what practice
area(s) an attorney specializes in,...
In
2011, ALPS formalized its commitment to education and risk
management with the advent of ALPS Educational Services (AES). With
over two decades of working in all phases of the professional
liability insurance industry — from underwriting to sales, to
marketing and education — there are real benefits ALPS brings to
our policyholders and the legal profession. Not only does ALPS
provide premier protection to its policyholders, but we have always
been committed to Continuing Legal Education and risk management
programs.
We’re
all taking advantage of it; in fact many of us say we couldn’t live
without it. We use technology throughout the day to help us stay in
touch and communicate. We can text, e-mail, Facebook and blog (like
I’m doing right now.) from just about any place with our
smartphones and laptops. When it comes to handling a busy practice,
the efficiency and convince this can create are indisputable.
However, it has changed our work pace and our work place and
perhaps not always for the better. Are you addicted to checking
your e-mail at all hours of the day and night? Can you unplug when
on vacation or a family outing? And what about the pace….do you
feel compelled to respond right away even though you may have been
working on another task or...
It's
hard to believe that ALPS has been around for twenty-four (24)
years as of this past March 1st. Over that time we have
amassed a lot of experience, mostly good and some not so good, but
on the whole it allowed us to become the best prepared Lawyers'
Professional Liability Insurer in the country to meet the needs of
lawyers in rural areas. During that time we've gotten very good at
defending lawyers when malpractice claims arise and to quote Kenny
Rogers, "We know when to hold-em and we know when to fold-em." I
don't mean to sound glib, but this experience has allowed us to
produce some of the highest quality live CLE events in the country
for our affiliated Bars and thousands of lawyers throughout the
country.
We
have all made referrals. For some, making a referral is almost a
daily occurrence. Lawyers often make referrals after work is
declined. Staff may make them in response to cold calls or to
clients who need a service that the firm doesn’t provide. Referrals
are sometimes made during dinner conversations, at social events,
or after a presentation made to the general public. We may pass
along a name to a family member, a friend, a colleague, and
especially good clients. After all, we do want to make sure our
good clients are well taken care of. Too often, however, referrals
seem to be made without any thought of the potential malpractice
exposure. Is such casualness justifiable? Unfortunately, the answer
may be no.
Believe it or not, file
handoffs can lead to trouble if not properly managed. It
doesn’t matter if the handoff is from a partner to an associate,
from one firm to another post referral or purchase of a practice,
or is to a new firm or attorney after the current attorney’s
practice has ended due to death, disability, retirement, or
disciplinary action. There are concerns that should be
addressed with all of three situations. Why? Because an
attorney’s liability for a client file isn’t limited to the
decisions made or actions taken solely during the time he or she is
personally responsible for doing the work on that file.
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. 
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 
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.
Entering
its third year as a member of the ALPS family of professional
services, 
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. 
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...
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...
"Of
counsel" is one of those terms that has multiple
meanings. This term has traditionally been used as an honorary
designation for retired partners, as a special designation for firm
attorneys who are neither a partner nor an associate, and as a way
to describe part-time attorneys who have created an association
with a firm. In recent years, however, more attorneys seem to
want to use the term solely as a way to generate additional
business. After all, the increased exposure coupled with the
presentation of close ties with another firm can be an effective
marketing tool, right? Well perhaps, but there are risks that
come into play and these risks should not be taken lightly.
Guest
blog post by
IVR.
Stands for Interactive Voice Response. They are designed to
improve the customer experience, reduce costs and even drive
sales. In fact, a quick Google search brought up the
following results and sponsored ads:
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