“Risks Of A Personal Injury Case”
According to the Department of Insurance Statistics, the most “risky” area of practice is Plaintiff Personal Injury work. In 2018, 26.5% of paid claims involved this area of practice. Statistics also tell us that 26.5% of all closed 2018 claims resulted out of the “commencement of action” phase of the practice.
Missed filing dates have consistently been the largest category of error that result in a malpractice claim for attorneys in Missouri. How do these errors keep happening and what can we learn from these errors to help avoid the risk of an error in the future?
A claim arising out of a missed filing deadline can develop out of a number of different factual settings:
1. An administrative error where the date is incorrectly input into a docket system. This is one of the reasons why malpractice insurance carriers advocate a dual docket system.
2. Incorrect information from the client or in a police report. Clients can be nervous or in pain when they first meet an attorney after an accident. Their memory of a particular date of an accident may be clouded. Dates should be double checked with medical records and police report dates.
3. Incorrect knowledge of the law regarding the statute of limitations for the client’s claim.
- The accident/injury occurred in another state with a shorter statute of limitations. Many states have shorter statute of limitations for personal injury claims. Some states have a statute of limitations as short as one year.
- The accident/injury occurred on a cruise ship which restricted the statute of limitations.
- The claim was against a local or municipal government, which may have specific notice requirements, such as a slip and fall claim against certain municipalities in Missouri, or a shorter statute of limitations for claims against local governments, such as in Illinois.
- The accident/injury recovery arises under the Federal Tort Claim Act.
- The client was in the military.
- The claim is against healthcare providers or other professionals with a shorter statute of limitations.
The practice of law is complicated. Knowing the risks and what you can do to address these risks is vital for a successful resolution for your client, as well as your own success.
The Ballots Are In…
For the third year in a row the readers of Missouri Lawyers Weekly have voted Kaestner & Berry as a “Best Malpractice Insurance Provider”. We are honored to be the ONLY independent agency to receive this recognition.
As an independent agency we are different from the large companies.
- We do not take a cookie cutter approach. We work with over a dozen carriers in order to provide the best pricing and coverage to our customers.
- We are dedicated to lawyers. All of our clients are lawyers. We do not dabble in other areas of insurance.
- We are dedicated to lawyers in the Heartland of America.
Thank you for your continued trust in Kaestner & Berry Professional Insurance Services, LLC.
Best wishes for your Independence Day holiday!
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Conflicts arising from Social Media and Technology Usage
The attorney-client relationship does not have to involve a face-to-face meeting or a signed engagement letter. An attorney-client relationship could be inadvertently formed if a client “reasonably relies” on what they believe to be the attorney’s legal advice through social media. It is possible that a short blog, tweet or other social media comment could expose a firm to liability or conflict a law firm out of a big case.
Risk Management Tips:
- Do not post anything on social media that could be viewed as providing legal advice. This includes avoiding providing one-on-one advice, soliciting more information, or expressing legal opinions online.
- Develop strong disclaimers to make it clear that no legal advice is being provided by the social media post and that no attorney-client relationship is formed.
AM Best is the premiere rating service for insurance companies in the United States. AM Best has been reviewing and analyzing the financial stability of insurance companies since 1899. Through good and bad economic times, the American public has relied on AM Best to access the financial strength of insurance companies.
Before purchasing insurance, make sure that the company that insures you has the financial stability to pay claims in the future. Legal malpractice claims can take years to resolve. An AM Best rating of “Excellence” provides the consumer with assurance that the carrier has sufficient financial resources both now and in the future to pay claims.
Insurance professionals worldwide depend upon an AM Best Financial Strength Rating to assess the creditworthiness of an insurance company. Contact Kaestner & Berry if you have any questions regarding the financial strength of your carrier.
Missouri claim statistics from the Department of Insurance highlight an increase in risks to practicing lawyers.
According to Department of Insurance statistics, the average payout on a successful claim increased from $145,046 to $204,581. In addition, the average “loss adjustment expense” also increased to an average of $61,252. (The “loss adjustment expense” is the costs to an insurance company to defend an attorney in a claim.)
Certain Area of Practices (AOP) are more at risk for a claim. As a result, it will come as no surprise that insurance companies charge higher rates for these AOP’s. Plaintiff Litigation work has, without exception, been the highest risk AOP to result in a claim. A few years ago, with the economic downturn known as the “Great Recession”, claims in the Real Estate AOP rose dramatically. We are also hearing from underwriters that claim severity is a particular issue for attorneys who practice in the Estate, Trust area of law.
If you practice in these areas of law, you are paying a higher rate for your Lawyer’s Malpractice Insurance. You also may be experiencing a slight increase in your premium.
At Kaestner & Berry we work with over a dozen of malpractice carriers. This allows us to provide you with the best available pricing for your malpractice insurance needs.
Kaestner & Berry is again nominated as one of the top 3 Best Malpractice Insurance Providers by Missouri Lawyers Weekly magazine. We would appreciate your vote in helping us reach #1. You can place your vote online, no later than May 9th, by clicking the following link. https://molawyersmedia.com/reader-rankings-2019/ . Then select Firm Management Services and scroll down until you see Malpractice Insurance Provider and just simply click on the “Vote” button next to Kaestner & Berry. We appreciate your vote and look forward to continuing to provide great service to you and your firm.