Must Read Monday Are Your Policy Limits Enough?
Whether your firm is considering expanding or winding down, Lawyers’ Mutual’s limits of liability which range from $100,000 per claim/$300,000 annual aggregate to $5M/$7M annual aggregate have you covered.
Why it is important to review your LPL policy limits at your next renewal
As a Lawyers’ Mutual member you will know our policies carry a per claim limit and an aggregate limit for all claims that are paid out in a given policy year.
For example, for a solo practitioner or small firm that is considering purchasing a $100,000 per incident/$300,000 in the aggregate policy, the maximum we would pay for a single claim would $100,000.
The aggregate is the total available/maximum for all claims made in a policy year. For example, if 5 claims were made during a policy year, only $300,000 total would ever be paid out by the company. Remember: All Lawyers’ Mutual policies carry a $50,000 annual Claims Expense Allowance outside of any limits purchased.
Lawyers’ Mutual allows members to review and update their limits annually at time of renewal, subject to no active “open” claims.
When evaluating the amount of policy limits that will provide you adequate protection at renewal, we recommend reviewing the particular areas of law which you practice and consider if there has been any expansion or growth of such, the current values of your clients’ cases, and the current values of your personal assets.
For example, if your primary area of practice is wills, trusts and estate planning, securities or catastrophic personal injury law, $100,000 may not be sufficient coverage.
It is important to consider the monetary value of the matters that you handle for your clients and what would it cost to make the client whole in the situation an error occurs.
Since the Lawyers’ Mutual policy, like all LPL policies, diminishes after the $50,000 Claims Expense Allowance is exhausted, you also should factor in that an appropriate limit should be enough for defense and indemnity of any claim made. If you are interested in increasing your policy limits at your next renewal, please feel free to fill out an increased limit form online or contact our Underwriting Department at (818) 565-5512.
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Must Read Monday Lucky Lawyers’ Mutual Member Benefit
St. Patrick’s Day might be over, but your luck hasn’t run out as a Lawyers’ Mutual member.
Our newest member benefit with the Daily Journal, California’s leading legal newspaper, is your next lucky charm.
Redeem your exclusive 20% off discount to both print and digital publications by following the steps below.*
To obtain your exclusive member pricing, call or email the Daily Journal.
Phone: (866) 531-1492
Email: subscribe@dailyjournal.com
Be sure to have available:
- Your Lawyers’ Mutual client number (found in your policy documents)
- Delivery address for your Daily Journal subscription
*New subscribers to the Daily Journal will receive instant access to this offer and existing Daily Journal subscribers can take advantage at the time of their next subscription renewal. This offer is valid for annual subscriptions only.
Learn more about your new member benefit subscription offer to the Daily Journal here.
For any questions, please contact mbinfo@lawyersmutual.
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Must Read Monday Benefits of Bar Association Membership
Did you know California has an assemblage of specialty bar associations that cater directly to a specific segments of the legal community?
Lawyers’ specialties and practice areas vary, so we appreciate it can feel overwhelming to find your footing outside of your specific practice. This is where joining a bar association can assist and the benefits of doing so can help you grow your practice, credibility and your reputation.
Joining a bar association can provide you with opportunities such as:
- County / AOP specific news and legal development information
- Networking with your peers and related legal experts
- AOP / Section specific focus groups
- Member benefits, tools and resources
- Client referral programs
- Continuing legal education webinars / seminars
- Community and access to justice volunteer programs
- In-person events both professional and social
Be sure to research the Bar Association(s) you are considering joining to find those that are best tailored to help you grow and protect your practice further.
Please feel free to use the link here to all active California bar associations.
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Must Read Monday Succession Planning
You’ve built a thriving practice through hard work and dedication, but have you ever considered what happens when it’s time to retire or in the event of an unexpected emergency?
What is succession planning?
Succession planning is essential to every lawyer’s practice, proactively protecting clients and colleagues in the event of disability or death.
Succession planning may not be at the top of your to-do list, but it’s crucial to ensuring the continued success of your practice and the protection of your clients. Take the time to develop a plan that reflects your values and goals. With the right tools and resources, you can leave your practice with confidence and peace of mind.
When should I consider succession planning?
Succession planning is imperative to all law firms, not just those close to retirement.
How do I go about succession planning?
Start planning early: Succession planning takes time, so it’s important to start thinking about it as soon as possible.
Identify a successor: Choose someone who shares your values and who you trust to take over your practice when you retire, become incapacitated or pass away.
Create a contingency plan: In case of unforeseen circumstances, have a contingency plan in place that is easily accessible to others and outlines what will happen to your practice if you become unable to work.
Seek professional advice: Consult with an attorney, financial planner or other professional who has experience in succession planning.
What key elements should be in my succession plan?
The ABA recommended items for an effective succession plan completed in conformity with applicable rules include, but are not limited to:
- Written instructions concerning how and where client information is stored, including bank and other account details (e.g., operating and trust account information);
- Information concerning disposition of closed client files, information about law office equipment leases or other contracts;
- Information regarding payment of current liabilities;
- Instructions to gain access to computer and voicemail passwords; and
- Information detailing how the successor will be compensated.
Succession planning resources:
Watch our CLE seminar Passing the Torch which demonstrates how a succession plan that follows the rules of the State Bar can benefit a law firm.
Alternatively, consider engaging with your preferred bar association, the California Lawyers Association, and / or a professional consultant, all of whom have tools and resources for succession planning.
Remember: Succession planning is a proactive step that may help prevent business interruptions in times of sudden illness or death. Protect yourself, your firm and your clients by considering a proper succession plan. For other general questions, our Member Benefits department is available at mbinfo@lawyersmutual.com
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Must Read Monday Understanding a Tail Policy
What is a tail policy or extended reporting endorsement?
An Extended Reporting Endorsement “ERE”, or commonly called a “tail”, is an endorsement that is put on your last active policy to create coverage for a claim that is reported after your policy expires, so long as there was a policy in place at the time the alleged error occurred. As lawyers professional liability (LPL) policies are claims made policies, without the purchase of the ERE/tail, all coverage will cease on the day the policy ends.
When should I purchase a tail policy or extended reporting endorsement?
When a solo retires or leaves private practice or when a firm either ceases operations or dissolves.
How much does a Lawyers’ Mutual tail / extended reporting endorsement cost?
- 1 year tail: 100% of your premium recalculated at the time of cancellation
- 3 year tail: 180% of your premium recalculated at the time of cancellation
- 5 year tail: 220% of your premium recalculated at the time of cancellation
- Lifetime tail: 285% of your premium recalculated at the time of cancellation
Our provisions for tail with costs is found in the Universal Policy at Section 2.6.
For more information, contact our Underwriting Department at info@lawyersmutual
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Must Read Monday Daily Journal
Through collaboration with the Daily Journal, California’s leading legal newspaper, Lawyers’ Mutual members will now have access to purchase an exclusive subscription offer to both print and digital publications.*
The Daily Journal provides California attorneys with the news and information they need. No other publication devotes more resources to serving California lawyers.
To obtain your exclusive member pricing, call or email the Daily Journal.
Phone: (866) 531-1492
Email: subscribe@dailyjournal.com
Be sure to have available:
- Your Lawyers’ Mutual client number (found in your policy documents)
- Delivery address for your Daily Journal subscription
*New subscribers to the Daily Journal will receive instant access to this offer and existing Daily Journal subscribers can take advantage at the time of their next subscription renewal. This offer is valid for annual subscriptions only.
Learn more about your new member benefit subscription offer to the Daily Journal here.
For any questions, please contact mbinfo@lawyersmutual.com
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