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.