Q:  How is the amount of my firm’s premium determined?

A:  Our Vice President, Underwriting, Lois Smith, analyzes and assesses the information provided in your application when calculating your firm’s premium. Although Lawyers Mutual has an established base rate for each limit of liability when combined with each deductible option, Lois may adjust your premium based on what she learns from your application. She focuses on several factors, including, but not limited to, the following:

• Size of firm
• Areas of practice
• Number of years in practice
• Full or part-time practice
• CLE credits earned
• Time/Docket control system
• Firm management
• Record control
• Claims history
• Insurance history

 

Q: Is the amount of my firm’s premium affected by my areas of practice?

A: Yes, if your firm concentrates in certain areas of law. Loss experience studies identify plaintiff’s personal injury work, real estate, and bankruptcy as areas with a high frequency of claims. Firms concentrating extensively in any of these areas may have a higher premium.

 

Q: Is the amount of my firm’s premium affected by my claims history?

A: Yes, but only if you experience two or more claims in a three year period.

 

Q: Do I receive a discount on my premium if I am a new attorney?

A: Yes. Our New Attorney Discount Program offers reduced premium rates for attorneys in their first through fourth year after admission to the bar. Attorneys receive a 60% discount in premium in their first year of practice, a 50% discount in their second year, a 40% discount in their third year and a 20% discount in their fourth year. Beginning in the second year of practice, attorneys are eligible for additional premium credits, such as our CLE credit. This credit is applied if the attorney has earned over 20 CLE credits in the prior year.

 

Q: Do I receive a discount on my premium if I practice law only part-time?

A: Yes. If you practice law less than 30 hours per week, you are eligible for a premium credit. In our application you have the opportunity to report your part-time practice and indicate the number of hours per week you practice law. When reviewing your application, Lois Smith, Vice President, Underwriting, calculates your premium based upon your part-time status.