Situation: Medium-sized firm experienced surge in claim activity. Current insurer was unwilling to continue covering the firm. Other standard insurers also were unwilling to offer coverage.
MGW Response: MGW was engaged because of its reputation in successfully working with high-claim, sometimes deemed uninsurable clients. MGW developed a four-tiered plan to optimize the firm’s position of insurability: 1) implement a root cause analysis to identify source of claim activity; 2) identify opportunities to reduce future claim activity, including corrective and preemptive policies, programs, and procedures; 3) collaborate with firm management to implement recommendations to restore insurer confidence and, 4) create a competitive marketplace among insurers to secure the most comprehensive policy at the best rates.
As a leader in the professional liability insurance field, MGW has strong relationships with synergistic partners in the fields of risk mitigation. MGW arranged for one of the most well respected, best-in-industry independent providers to initiate a thorough risk management assessment. The study identified very specific areas to modify and the long-term savings associated with each of those recommendations. MGW, the assessment provider, and the law firm worked together as a cross-functional team to ensure optimal design and implementation of the corrective measures.
Simultaneous to the firm’s applying the recommendations, MGW, with its extensive market contacts, successfully encouraged other insurers to underwrite the policy. With a significantly higher degree of comfort in the firm’s operating procedures and their potential for reduced claim activity, standard insurers now vied for the opportunity to quote. MGW had created a competitive marketplace for what initially had been deemed an uninsurable firm, securing a reasonably-priced policy underwritten by a standard insurer. The procedures adopted by the firm have been institutionalized across its various practice areas and management levels, keeping the firm claim-free for many years.