This is part two of my weblog discussing the simple pricing considerations that go in to an underwriters considerations when they pricing your lawyer’s skilled liability insurance. We are working our way by means of a standard application and addressing the questions in the order they are often posed. In this blog we will look at why underwriters ask for a law firm’s revenue, the number of attorneys and a breakout of the firm’s areas of practice. This is a general overview, if you have any certain questions or concerns please call me to discuss them or call your current agent.
The next question in numerous of the lawyer’s expert liability insurance applications is for the firm’s revenue for gross billings. The revenue numbers you disclose may possibly impact your premium some underwriters are seeking to see if your revenue per attorney is unusually high or low and could use that as a factor in their final premium calculation. A number of insurers also take the firm’s revenues in to account when deciding regardless of whether or not to provide coverage. If a firm’s revenues are too low the question of its’ long term viability might be called in to question. Lastly, the limits and deductible offered can be impacted by an underwriters concern with your capability to pay the premium generated by high limits of liability or your capability to pay a greater deductible if they deem your revenue too low to support it.