• Which practice specialties are considered by most underwriters to be "high liability"?

• Well, the truth is that there is no hard & fast rule, though some areas of law do tend to make standard market underwriters nervous, including:
• INTELLECTUAL PROPERTY, including Patent, Trademark & Copyright Law.  In this case, while there does not appear to be any greater likelihood of a claim - particularly since most IP attorneys and firms tend to be specialists in the field - when one does occur they are often exceedingly complex.  Thus, they can incur truly massive costs for claims/defense expenses.  One example that I know of is a well-respected solo, who handles nothing but patent prosecution and litigation.  He was hit with a claim, which ended up going to trial, and resulted in a total defense verdict.  Total claims expenses came to $438,000!
• SECURITIES, including SEC representation, IPO's, Private Placements, Mutual Funds, Hedge Funds, and related.  For (presumably) obvious reasons, this area of practice tends to attract potential claims.  Even if the law firm is only peripherally involved in a particular matter, if a deal "goes south" every professional who was within 100 feet of the matter gets dragged into the claim.  Like IP, these claims can be quite complex, and defense costs can be substantial - regardless of the outcome.  
• PERSONAL INJURY PLAINTIFF representation is, in fact, the most frequent area of practice resulting in legal malpractice claims; amounting to approximately 25% of all such claims.  The primary reason for this is the potential for missed deadlines and statutes of limitation.  Thus, underwriters will be looking closely at a firm's calendar/docket procedures, the volume of cases handled per attorney, as well as adequate support staff.  It should also be noted that this is an area of practice in which even a favorable result can leave the client unsatisfied.  Unrealistic client expectations are very often a key underlying issue when a malpractice claim is made against the attorney.  It is critically important, therefore, that the attorney or law firm have procedures in place to properly screen incoming cases . . . and not be afraid to decline representation when a case looks like trouble.
• CLASS ACTION LITIGATION has recently become a hot issue with most underwriters.  This has resulted in sky-rocketing insurance rates for those firms that are involved in any sort of class action work.  Obviously, law firms representing lead plaintiffs are subject to the closest scrutiny, but those attorneys and firms that do not represent lead plaintiffs are experiencing difficulty in obtaining reasonably priced malpractice insurance coverage.
• REAL ESTATE, primarily commercial transactions, as well as foreclosures.  Frankly, the fact that this area of practice is a close 2nd when it comes to claims frequency surprises many people.  Of course, the degree of perceived risk varies widely, depending upon the exact nature of the practice ("real estate" is a very broadly defined practice), and where the firm is located.  For instance, here in our "home turf" of New York City, commercial real estate has evolved into something of a contact sport.  Foreclosures, of course, carry a high degree of emotion, particularly when dealing with residential matters.  Some carriers are reluctant to write firms with heavy commercial real estate, while others continue to be comfortable and committed to writing well managed firms.
• DEBT COLLECTION, particularly retail/consumer matters.  The Fair Debt Collection Practices Act ("FDCPA") has become the weapon of choice for debtors who believe the old axiom that, "the best defense is a good offense."  While many claims arising from alleged FDCPA violations are ultimately dismissed, it costs money to reach that result.  Unfortunately, there are a small minority of chronic debtors who make such claims frequently - and often frivolously - representing themselves pro per, so it costs them virtually nothing but a filing fee and their time.  Sometimes, underwriters will insist upon a relatively high deductible for law firms with a substantial collections practice, so that it falls to the firm itself to defend nuisance matters; reserving the insurance for potentially more significant claims.  A few underwriters are even excluding coverage for FDCPA-based claims.  Be careful!

The Bottom Line?

If you or your firm practices in one or more of these High Liability areas, you need the help of an experienced insurance professional!

At Earhart Leigh Associates, Inc., we have the expertise - and excellent relationships with our underwriters - to ensure that every one of our client law firms receives the individualized attention - and the quality coverage - that they deserve.

Don't settle for anything less - give us a call today, and let's discuss your situation.  All inquiries are held in the strictest confidence, and are without any obligation on your part.