Webworthy News & Advice

Claims experience aside, though, overall insurer profitability problems are contributing to rising rates. Recession-damaged investment portfolios, terrorism claims and corporate scandals all have impaired insurer profitability.

Source: 'Paying a Premium for Law Firm Malpractice Insurance' by Anthony Lin, New York Law Journal, 03-21-2003. Accessible online at http://www.law.com/. Registration may be required.

In First American Title Ins. Co. v. Lawson, 351 N.J. Super. 407 (2002), a New Jersey Appellate Decision allowed rescission of the entire malpractice contract notwithstanding such a clause. On March 3, 2003, the New Jersey Supreme Court justices heard arguments appealing that decision. Plaintiffs' lawyers are asking the NJ high court to maintain its traditionally liberal view of insurance, erring on the side of coverage rather than exclusion.

Source: 'Binding the Firm With the Big Lie' by Michael Booth, New Jersey Law Journal, 03-11-2003. Accessible online at www.law.com. Registration may be required.

Professional liability insurance rates for attorneys at large firms ' currently averaging $4,000 to $10,000 per lawyer ' are likely to rise 35 to 75% in the next year, some experts say.

Smaller firms, which often participate in pooled insurance plans, will more likely see increases from 25 to 30%. The less drastic increase for these firms would reflect their lower litigation risk, according to Anthony Davis, a New York-based partner at Chicago's Hinshaw & Culbertson. Davis specializes in professional liability issues.

Firms engaged in certain high risk practice areas (eg, patent prosecution and writing opinions on tax shelters) more often face large malpractice claims. Such firms can expect to see the highest rate increases.

Claims experience aside, though, overall insurer profitability problems are contributing to rising rates. Recession-damaged investment portfolios, terrorism claims and corporate scandals all have impaired insurer profitability.

Source: 'Paying a Premium for Law Firm Malpractice Insurance' by Anthony Lin, New York Law Journal, 03-21-2003. Accessible online at http://www.law.com/. Registration may be required.

In First American Title Ins. Co. v. Lawson , 351 N.J. Super. 407 (2002), a New Jersey Appellate Decision allowed rescission of the entire malpractice contract notwithstanding such a clause. On March 3, 2003, the New Jersey Supreme Court justices heard arguments appealing that decision. Plaintiffs' lawyers are asking the NJ high court to maintain its traditionally liberal view of insurance, erring on the side of coverage rather than exclusion.

Source: 'Binding the Firm With the Big Lie' by Michael Booth, New Jersey Law Journal, 03-11-2003. Accessible online at www.law.com. Registration may be required.