As many of you are now becoming aware, the insurance market is experiencing many dramatic changes. These new market conditions were already in progress last summer but became accelerated with more significant impact following the national tragedy of September 11th. The Professional Liability market was ending a seven to ten year period of diminishing premiums combined with a downward spiraling stock market forcing carriers to increase their rates to offset growing losses. Even with these increases in rates, many carriers found that the level of profitability required could not be achieved related to the risk.

What does this all mean to you the law firm - Business as usual was no longer applicable. Within the last six months, five carriers have left the State of Arizona alone. Two of these, Scottsdale Insurance Company and Safeco Insurance Company, have been foundations of the Arizona legal marketplace. The remaining carriers are seriously evaluating their current insureds, limiting coverages, increasing deductibles and non-renewing clients all with a minimum of 25% - 40% rate increase.

If your firm practices in a higher risk area of practice (class action/mass tort, securities, plaintiff personal injury, intellectual property/copyright, high value domestic relations, bankruptcy, judicial foreclosure, etc.) do not expect that your renewal will be uneventful. When you combine any of these practices with claims and or multiple suits for fees, you may have difficulty procuring an insurance program with any similarity to your expiring policy. What you need to do - Filling out incomplete or short form renewal applications is no longer viable to contact alternative markets. If you have claims or unique issues, provide detailed narratives explaining the situation. Depending on the broker's influence, you may be able to speak with the company directly to better communicate your issues or concerns. Interview your broker to insure that he/she has the market influence and knowledge to work with your unique circumstances. Remember, your submission is your representation to the carrier.

Make sure it conveys a positive image of your firm and the services you provide to your clients.

Finally, be in control and pro-active with your insurance program. Not all insurance carriers are alike. Find out how they handle claims, if you have any input in the selection of representing counsel and how many firms does that broker and or carrier insure in the state. Be prepared at renewal time and allow enough time to consider alternative options.