Taking advantage of its membership numbers, the SDCBA now offers a Bar-sponsored professional liability program through Ahern Insurance Brokerage, a locally owned and operated insurance company.

The program could not have come at a better time for SDCBA members. At a time when many malpractice carriers are leaving California, and rates are continuing to rise, there are fewer options available, particularly for the smaller firms, according to Bryan Ahern, AIB president. "This endorsement will provide stability, competitive pricing and continuity to the San Diego legal malpractice market," he said. "They'll have the benefit of group pricing, and it will be an exclusive program to Bar members in San Diego." He anticipates the program will be available to SDCBA members by Dec. 1.

Ahern Insurance Brokerage has been providing commercial insurance to the local legal community for more than 11 years. They provide access to more than 20 different companies with proprietary programs for small, medium and large firms, and currently represent approximately 1,400 law firms including Duck or Spradling & Metzger, Thorsnes Bartolotta & McGuire, Wingert Grebing Brubaker &Ryan, Neil Dymott Perkins Brown & Frank, and Sullivan Wertz McDade & Wallace, to name a few. "We insure more lawyers than any other agency in San Diego," Ahern said.

The company also has program endorsement experience with other bar associations, including the Bar Association of San Francisco and Orange County Bar Association.

"We have had sponsored programs in the past, but we haven't had one in recent years," said SDCBA Executive Director Sheree Swetin. "Up until now, we had not found one that could meet our needs." Insurance is going through a 'hard market' cycle, she added, and this is expected to continue through the first half of 2004, according to Ahern. The professional liability carrier is XL Capital, one of the financially strongest carriers in California with $40 billion in assets and a rating of A+(Superior) from A.M. Best, the nation's leading insurance industry rating service, Ahern said. The policy provides a one-year coverage period for anywhere from 1 to 50 lawyers.

Policy limits are $500,000 to $5 million per claim or annual policy period, with deductibles as low as $5,000. In addition, the program will have a free retirement tail associated with it, input on the selection of legal defense counsel in the event of a claim, a sublimit for disciplinary actions, and risk management services that will be provided by XL, AIB and the SDCBA working together, Ahern said. All of the underwriting is conducted out of Dallas, Tex., he added.

By leveraging the collective buying power of its 7,200 members, the Bar-sponsored professional liability program makes it possible for firms of all sizes to obtain affordable insurance coverage. Had this program not been endorsed by the Bar, XL Capital would not be providing coverage in San Diego to just one or two persons individually, Ahern explained.

"The benefit of this program is, because of the volatile marketplace, this could provide some stability," Ahern said. "Right now, the smaller firms are having a hard time finding competitive coverage."

"The other advantage is that by members joining in numbers, it does create the ability for a carrier to look at that group, and foresee the ability to write a fair amount of business. "Because of that, they're going to provide a competitive product," Ahern added.

Like any other policy, the cost of a premium is calculated based on an analysis of risk. Geographically, San Diego's claim history has made an impact on how the overall risk is viewed, particularly in the last two years, Ahern said. "San Diego historically has been considered a more desirable area than Los Angeles County and probably on par with Northern California," he said.

"Although of late, many of the underwriters are telling us that their loss experience has been more favorable in Northern California." However, SDCBA members can rest assured that attorneys with insurance expertise have already done due diligence on this policy, since both the Bar's Member Benefits Subcommittee and Legal Malpractice Committee were involved in making the sponsorship decision. "A committee of malpractice insurance specialists has reviewed it, so you've had some eyes and ears out there ensuring that it is a quality product and quality people behind the product," Ahern said. AIB was selected after a thorough process, which included a formal request for proposal by the SDCBA on behalf of its members. More than 12 different insurance brokers and companies responded to the RFP. The Bar-sponsored professional liability program is the latest addition to a growing list of SDCBA membership benefits. The Bar continues to offer group pricing policies for medical, dental and life insurance for its members through Barney &Barney LLC. For a complete list of member benefits, consult your San Diego Lawyer Directory or call (619) 231-0781. For more information on the Bar-sponsored professional liability program, call Ahern at (858) 571-9030, ext. 101.