PHIL’S CORNER: The Impact of Inflation on Insurance

PHIL’S CORNER: The Impact of Inflation on Insurance I’m not an economist, but I could play one on TV. Plus, which economist do you believe since they all have slightly different opinions. So, let’s stick to the things most people in the insurance industry agree: the impacts from inflation we are almost certain will occur. We know many actuaries are nervous in issuing their opinions because inflation has changed the environment in their financial forecasting and the impact on loss reserves, pricing...

Cyber Coverage: Higher Limits in High Demand

Cyber Coverage: Higher Limits in High Demand I know from many phone conversations that many of our insureds are becoming more aware of cyber coverage. We also certainly see more interest in increasing the limits from the $100,000 aggregate we include by endorsement to all our lawyers professional liability (LPL) policies. It is correct to ask, and to examine the cost involved. We all continue to read about cyber losses, primarily coming from cyber extortion. We are all also acutely aware of...

PHIL’S CORNER: 2021 Policy Dividend – a Loyalty Reward

PHIL’S CORNER: 2021 Policy Dividend - a Loyalty Reward The OAMIC Board of Directors recently declared a policy dividend of approximately 5% of the earned premium for annual policy limits up to $1 million. This equates to about $448,000 to be paid to policyholders who have a current policy as of the Dec. 31, 2021, record date. I like to think of this year’s divided as a reward to those loyal policyholders. It is also a means to reduce your net cost...

PHIL’S CORNER: Employment Practices Liability Insurance, Even for Solos & Small Firms

PHIL'S CORNER: Employment Practices Liability Insurance, Even for Solos & Small Firms Did you know employment practices liability coverage (EPL) can be added to your lawyers professional liability (LPL) policy? Have you seriously considered it from a cost/benefit standpoint? The answer is obviously yes if your firm has added it, as about 47% of our insured firms have. If not, is it because you are uncertain about what it covers and the underlying exposure? In 2020, the EEOC received approximately 70,000 discrimination...

PHIL’S CORNER: With A Little Help From Our Friends

PHIL'S CORNER: With A Little Help From Our Friends I know, now you will be singing that song – or at least that line – the rest of the day! With all the uncertainties the past couple of years, we are even more thankful for our insureds (friends) than ever before. That is appropriate for this time of year. One thing the pandemic has taught us out of necessity, even if not the desired method, is that we can accomplish a decent...

PHIL’S CORNER: Managing Your Clients’ Expectations

PHIL’S CORNER: Managing Your Clients’ Expectations A couple of things make it increasingly difficult to achieve client satisfaction in the provision of legal services. Starting out with a disgruntled client who is never happy and has already been to four other lawyers creates a mountain that is very difficult to climb. But, the other very tough situation is a client who begins with expected results that are probably impossible to ever obtain. What Do You Want? Several years ago, a very experienced lawyer...

How the Number of Attorneys Affects Premiums

How the Number of Attorneys Affects Premiums I get questions from time to time along the lines of “Why is my insurance twice as much just because I now have two lawyers at the firm instead of one?” I promise this won’t be a primer on insurance, but to really answer that question, we have to back up and look at the basis to which rates are applied in order to determine your premium. This is formally referred to as the...

Considerations for Attorneys With Clients in Cannabis-Related Businesses

Considerations for Attorneys With Clients in Cannabis-Related Businesses We were probably the first lawyers professional liability insurer to openly declare the willingness to write coverage for law firms providing legal services to cannabis business clients. Many insurers declined to underwrite firms with these types of clients, while others crafted specific exclusions for claims arising from clients in a cannabis business. On the other hand, we felt this niche area of practice was largely business transactional, along with corporate and business organizational,...

PHIL’S CORNER: Prior Acts – the 2nd Trigger of Coverage

PHIL’S CORNER: Prior Acts - the 2nd Trigger of Coverage Phil’s Corner is a special column from OAMIC’s President & CEO Phil Fraim. We have made an effort to make sure policyholders have an understanding of a claims-made policy, on which professional liability is written. The easiest means to do so is to focus on the major differentiations from an occurrence-based policy. What is known as the “first trigger” of coverage in a claims-made form is that a policy must be in effect...

PHIL’S CORNER: Dividends – Sharing Our Efforts

PHIL’S CORNER: Dividends – Sharing Our Efforts Phil’s Corner is a special column from OAMIC’s President & CEO Phil Fraim. I am sure the favorite envelope you receive from us has to be the one containing the policy dividend check. In all honesty, it is our favorite one to send because it means we had something left in which to share with you, recognizing your efforts that made it possible. What a crazy year 2020 turned out to be. Yet, with all the...