Malpractice Insurance Report

By Helen Christophi
     
Even as the frequency of malpractice suits in the state continues to rise, the good news for California attorneys is that during the past year malpractice insurance rates fell by as much as 10 percent because of increased competition. At the same time, two-thirds of insurance carriers offered additional, premium discounts.
      But before doling out those discounts, a growing number of carriers required firms to implement sophisticated, rules-based legal-calendaring software to reduce the threat of missed deadlines-the most frequently cited reason for malpractice claims. "Many carriers will give some level of premium discount for having it in place," says Mark Bassingthwaighte, risk management coordinator at ALPS RRG. "These discounts help push firms a little further a little faster."
      Seven out of ten firms report receiving rate concessions for having rules-based software, according to Joseph C. Scott, general manager and vice president at CompuLaw and Deadlines On Demand. Scott says that if firms can show why they won't be missing deadlines, that will impact their chances of obtaining a lower premium.
      Meanwhile, the California State Bar is considering requiring attorneys to inform their clients whether they have malpractice insurance coverage. If the regulation passes, Scott expects even more attorneys to implement rules-based calendaring software to keep down their premiums.
      For now, though, sophisticated software is not essential to getting good rates (although industry experts predict it may become a requirement for discounts in the future). In fact, firms that have a computerized calendar with a docket-control system that's not rules based still can expect considerable markdowns-which may continue for perhaps another couple years. Moreover, with market conditions as soft as they are, firms may continue to see flat rates for awhile, even after a claim is filed against them.
      The carriers in the chart below offer professional liability coverage to attorneys in California.
     

2008 Malpractice Insurance chart

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