Category Archives: Pennsylvania Insurance

Have You Reviewed Your Legal Malpractice Policy Limits Lately?

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When was the last time you reviewed the policy limits on your legal malpractice insurance?

For many attorneys and law firms in Pennsylvania and Ohio, the answer is: “It’s been a while.” 

And for some, it’s even worse — they’ve never increased their limits since first purchasing their policy.

We get it. When you first bought coverage, it felt like checking a box. 

You picked a limit — maybe the standard $100,000 per claim / $300,000 aggregate — and haven’t thought much about it since. Unless a client insisted on a higher limit, there may have been no urgency to adjust anything.

But that mindset can put your entire practice at risk.

Why It’s Time to Rethink Your Firm’s Insurance Limits

As I like to say:

“Trying to raise your limits after a claim is like trying to buy homeowner’s insurance when your house is already on fire.”

Let that sink in.

Here are a few things that have likely changed since you last looked at your policy:

  • The cost of living has risen significantly — including in Pittsburgh, Harrisburg, Cleveland, and Columbus.
  • Real estate prices, car prices, and even eggs have all gone up.
  • Your cost of doing business — from staff wages to office rent — has increased.
  • And your legal fees have likely risen, too.

So, if every financial metric around you has grown, why haven’t your malpractice limits?

Low Limits For Your Legal Malpractice Insurance Can Cost You Big Time

The most commonly offered “starter” policy is $100,000 / $300,000. And while that might sound like a lot, it doesn’t go far when:

  • Defense attorneys start billing (what would you be charging?)
  • Expert witnesses are brought in
  • A claim needs to be settled before trial

Even a small-to-midsize claim can eat through six figures fast — leaving you on the hook for the rest.

At that point, you’re not just protecting your firm — you’re protecting your personal assets, too.

How to Determine the Right Coverage For Your Law Firm

If you’re unsure what limits make sense, here are a few questions to ask:

  • How many active clients does your firm currently serve?
  • What is the average value of the cases you handle?
  • How many attorneys are in your firm?
  • What is the current cost of living index in your area?

These factors should all influence your decision. 

A solo attorney in Erie, PA handling traffic tickets may have different needs than a five-attorney firm in Cincinnati managing complex civil litigation — but both should at least evaluate whether their limits are keeping pace.

Don’t Say “No” Without Knowing the Cost

One of the most common objections we hear is:

“I’d love to increase my coverage — but it probably costs too much.”

But many firms say that before even getting a quote.

In reality, increasing your limits might not cost as much as you think. 

And the peace of mind it offers — especially if you’re planning for retirement or growing your practice — is well worth the investment.

Legal Malpractice Insurance in Pennsylvania and Ohio: Get a Review

If you’re a law firm based in PA or OH, now is a great time to schedule a malpractice policy review with us. Whether you’re in Philadelphia or Dayton, Erie or Akron — your firm deserves coverage that reflects today’s legal environment.

You wouldn’t go five years without adjusting your rates or reviewing client contracts — don’t let your insurance stay stuck in the past.

Final Thought

Before you say no to increasing your limits, ask:

  • When was the last time I adjusted my coverage?
  • What would a real claim cost me today?
  • Am I protecting my future — or playing defense?

Want to dive deeper?

Grab a free copy of my book, Game Over? Not Today!, which covers risk exposure, cyber liability, and real-world scenarios that law firms face every day: https://bit.ly/INF-Game-Over-Not-Today

July Attorney Pro Risk Tip of the Month

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Don’t give informal legal advice to friends or family.
Don’t give informal legal advice to friends or family. It can be tempting at a party or family event, but it could be harmful to both yourself and the receiver of the advice. Your advice, given casually, may be less well thought-out than usual, or not backed by needed research. Also, you could be creating a conflicts issue for yourself by giving advice to a person who has not been through a conflicts of interest check first.

Tip courtesy of  www.attorneyprotective.com

Reporting A Claim Under A Claims Made and Reported Policy

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Most professionals know to protect themselves and their clients with the purchase of a professional liability insurance policy, commonly referred to as an E&O policy.  What most professionals don’t know or don’t care to know, is when and how to properly report a claim or potential claim to their insurance carrier.

Initially, the most important issue when reporting a claim is the timing of the notice to the carrier.  All carriers have different reporting requirements but most state that the claim or potential claim must be reported to the carrier in the policy period YOU first become aware of the claim or potential claim.  Some carriers are even more restrictive and will use the term “immediately report” or “as soon as possible after first becoming aware of the claim.”  No matter the wording in the policy, the timing of the notice to the carrier is absolutely vital to the claim being covered under the policy.  A delay in reporting the claim or potential claim to the carrier can lead to a declination of coverage due to “late reporting.”  Late reporting is a term no insured wants to hear in a claim situation.  Do not fall into the trap of thinking it will just go away, or hold off on reporting for fear that your premium will increase.  Providing professional services for others unfortunately will give rise to a claim or potential claim.  These must be dealt with immediately.

All carriers have slightly different policy wording with regard to the timing of claim reporting.  The best way to reduce the possibility of a declination due to late reporting is to report the claim as soon as you first become aware of the claim or potential claim.  Regardless of “how much time” the policy provides, immediate reporting of the issue to the carrier will be viewed as favorable by the carrier and the claims personnel.  It may even provide a good night sleep for you!