Blog Post

No doubt you’ve been put in the following position (probably several times a year): You’re at a party or family event, and a friend or relative approaches you with a simple legal question. They preface the question by telling you that it’s a minor situation so it won’t take you long to answer. Since it’s someone who trusts you and someone close to you, you don’t think twice about giving legal advice. In fact, you’re happy to do the favor and it feels good knowing you’re able to help them out. Not to mention, you really can respond quickly to their inquiry and save them some money in the process.

Providing legal advice like this can be very tempting for family members and close friends, but it could actually be quite damaging to you professionally. While your intentions are noble (we all want to help those closest to us), your actions might be harmful to you, your law firm and even to the person to whom you’re providing advice. Remember that, as an attorney, when you give legal advice, it can come back to haunt you. Even given casually, your legal opinion may be less thought-out than usual and not backed by the research you would typically conduct if a paying client requested it.

Furthermore, by providing informal, free legal advice like this to friends and relatives, you might be creating a conflict of interest for yourself by giving advice to a person who has not been through a “conflicts of interest” check first. Do you really want to put yourself in that potentially disastrous position? There are much better ways that you can help friends and family without putting yourself into harm’s way.

Paragon Underwriters reminds you that when asked a legal question by a friend, it may appear that you are merely giving advice to someone close to you, but you have to be aware when a relationship becomes a lawyer-client relationship. The minute this relationship is formed, lawyers are bound by the rules of their professional responsibility. The relationship begins when there is a mutual understanding that the client is going to confide in the lawyer and the lawyer is going to listen. The relationship may commence even if there is nothing in writing and even if no money has changed hands. Although there must be a mutual understanding that the client has engaged the lawyer and the lawyer has accepted representation, it is the lawyer’s responsibility to make it clear to the potential client when this has occurred, and when it has not. Defining the relationship with those seeking advice from the beginning can avoid confusion and ethical issues down the road. Providing casual legal advice to a family or friend can result in major legal liability, malpractice, or disciplinary action as the non-clients may have reasonably relied on the information given. Rather than put yourself at risk, make it clear to the non-client that though you are unable to offer them legal advice, you can refer them to legal resources intended to help those who maybe cannot afford representation.

Communication is key in these interactions. If a conversation is turning into professional work, it is the lawyer’s responsibility to either put a stop to it or make it clear that further discussion should take place in a more formal setting. Similarly, when the lawyer has no intention of representing a potential client, the lawyer has the responsibility to communicate that no lawyer-client relationship exists. It is also important to remember that if a family member or friend has a lawyer, you should resist the urge to give a “second opinion”. The fact is the other lawyer has spent a lot more time on the case than you and is familiar with a lot of facts that the person you’re speaking with may not have disclosed. Consider that before telling someone that you would handle a situation differently than that person’s lawyer.

Attorneys have to make decisions each day of their professional lives. Selecting legal malpractice insurance is certainly one of the most important decisions you will make. A law firm should do significant research before choosing which insurer to go with for their lawyers’ malpractice insurance. At Paragon Underwriters, we have put together some helpful tips to consider before making that selection.

Look at the Forest for the Trees

Remember to look at the big picture rather than starting out by being overly specific with the details. Evaluate what the insurer is offering as well as that company’s financial stability and credit rating according to AM Best. Also, think about the agent’s past experience and reputation. Ideally, you’ll want to stay with this insurer for a long time so consider this a long-term commitment and make sure you feel comfortable with both the agent and the insurer.

Experience

As the famous football coach, Vince Lombardi, said, “Practice does not make perfect. Only perfect practice makes perfect.” Look into how long the insurer has been in business and what type of experience they’ve had. Just because an insurer has been around forever doesn’t tell you enough about their success, culture or how they treat their clients. Before signing anything, you’ll want to know if the insurer has specialized knowledge of lawyers’ professional liability insurance. You’ll also want to know if they are new to offering professional liability insurance or if they have a well-established book and proven track record.

Specialization

There are a lot of insurance agents out there. There are, however, very few who truly specialize in legal malpractice insurance. This highly specialized field has certain nuances that make it easy to miss key factors. Firms like Paragon Underwriters have been specializing in professional liability insurance for attorneys for nearly 60 years and have made this our niche. We know this part of the insurance industry better than most other firms, especially a general insurance agent who does mostly home, auto and business insurance – that agent may do one of these policies in his entire career, we do them all day every day and insure nearly 1,000 law firms in Michigan.

The Financial Stability Factor

Will you be able to rest assured that you’re covered? After all, you have a lot at stake with your law firm. It’s more than simply a financial decision to make. Your reputation as an attorney and your firm’s reputation is on the line. You need to be positive that the malpractice insurer has the ability to continue to pay claims into the future.

We’re in a Commitment Here

With claims-made coverage business, there’s an easy entry to market for new malpractice insurers. Therefore, many new insurers target specific markets to collect as much premium as possible, but they won’t be around when the claims come in. You want to ensure there’s a commitment on the part of the insurer to stick around when the worst happens and you need the claims to be paid.

What’s the Insurer’s Reasoning

Finally, make sure to research the insurer’s claims philosophy. What type of consideration do they put forward to determine whether to pay a claim? Will they be the type of insurer to fight for every dollar or will they be willing to settle without a struggle?

At Paragon Underwriters, we want to see you succeed. We sincerely care about our clients and help steer them toward smart, financially prudent decision making. We believe the relationship between the insurance agent and the law firm is a very important factor in determining the best coverage and the best insurer to use. We will provide additional insight as to which insurer best fits your needs. These decisions take time and we believe in calculated decision making. We will begin to work with you early on in the process and ensure the insurer is the right choice for your firm. That’s why we’re here… to serve you and to always have your best interests in mind. Call us today to start the process and we guarantee you’ll be happy with the experience.

Lawyers have to make decisions each day of their professional lives. Selecting their legal malpractice insurance is certainly one of the most important decisions an attorney will make. A law firm should do significant research before choosing which insurer to go with for their lawyers’ malpractice insurance. At Paragon Underwriters, we have put together some helpful tips to consider before making that selection.

Look at the Forest for the Trees

Remember to look at the big picture rather than starting out by being overly specific with the details. Evaluate what the insurer is offering as well as whether you trust them. Think about the insurance agent’s past experience and reputation. The same is true of the insurer. Ideally, you’ll want to stay with this insurer for a long time so consider whether you feel comfortable with the relationship at the outset.

Experience

As the famous football coach, Vince Lombardi, said, “Practice does not make perfect. Only perfect practice makes perfect.” Look into how long the insurer has been in business and what type of experience they’ve had. Just because an insurer has been around forever doesn’t tell you enough about their success, culture or how they treat their clients. You’ll also want to know if the insurance company insures many other law firms or if they are new to this type of exposure. Always elect an insurer who specializes in professional liability and has a large book of business – the larger programs offer premium stability, superior policy forms and many value-added benefits which firms can take advantage of.

Specialization

There are many insurance agents and brokers out there. There are, however, very few who specialize in legal malpractice and professional liability insurance. This highly specialized field has certain nuances that make it easy to miss key factors. Firms like Paragon Underwriters have been focused on professional liability insurance for attorneys and financial professionals for a very long time. We have made this our area of expertise and we are proud to be a part of the Michigan legal community.

The Financial Stability Factor

Will you be able to rest assured that you’re covered? After all, you have a lot at stake with your law firm. It’s more than simply a financial decision to make. Your reputation as an attorney and your firm’s reputation is on the line. You need to be confident that your malpractice insurer has the ability to continue to pay claims into the future – when you may need them most.

With claims-made coverage business, there’s an easy entry to market for new malpractice insurers. Therefore, many new insurers target specific markets to collect as much premium as possible, but they won’t be around when the claims come in. You want to ensure there’s a commitment on the part of the insurer to stick around when the worst happens and you need the claims to be paid.

What’s the Insurer’s Reasoning

Finally, make sure to research the insurer’s claims philosophy. What type of consideration do they put forward to determine whether to pay a claim? Will they be the type of insurer to fight for every dollar or will they be willing to settle without a struggle?

At Paragon Underwriters, we want to see you succeed. We sincerely care about our clients and help steer them toward smart, financially prudent decision making. We believe the relationship between the insurance agent and the law firm is a very important factor in determining the best coverage and the best insurer to use. We will provide additional insight as to which insurer best fits your needs. We will begin to work with you early on in the process and ensure the policy you select is the right choice for your firm. That’s why we’re here… to serve you and to always have your best interests in mind. Call us today to start the process and we guarantee you’ll be pleased with the experience.

At Paragon Underwriters, Inc., we know that a law firm’s commitment to proactive risk management coupled with sound business practices can lessen the likelihood that a lawyer will face a malpractice claim. It can also help mitigate potential losses should a lawyer be sued. Our Risk Management Program for CNA’s Insured Lawyers is ideal for Michigan’s law firms. Minimizing and managing an attorney’s risk is essential. At Paragon Underwriters, we take great pride in putting together the best professional liability insurance coverage for our clients, but we also make it a part of our mission to teach (and preach) good risk management. One of the most important aspects of a responsible risk management program is for attorneys to bring their insurer into the claims process as early as possible – ideally as soon as a claim is noticed.

This practice is the most responsible action and can save a lot of money — both the attorney and the law firm. When a lawyer contacts the insurer or agent as soon as trouble is brewing, it helps get everyone prepared to handle the situation.

Reporting a potential claim early enables the malpractice insurer to begin working on a resolution, which helps get the attorney and the firm back to business without any external hassles or distractions. The insurer may determine that it is appropriate to retain legal counsel to assist with a pre-claim situation. Other services may include grievance coverage, subpoena assistance, 24/7 risk management hotline, deductible reduction and oftentimes cyber liability coverage.

It is very important to remember that making certain actions without consultation with the insurer can result in a coverage denial. Examples of this include admitting liability, assuming damages, voluntarily making any payments, or incurring claims expenses. Such actions will likely violate policy conditions, which may result in a denial of coverage. Policyholders should not take action without first receiving guidance from their insurance agent or insurance company. Early reporting may trigger deductible reduction features and the attorney’s policy may offer a feature which reduces the deductible if you report claims early or settle claims within a certain period of time (usually 12 months). This could reduce your deductible by as much as 50 percent.

Contacting your insurer or agent is a good way to avoid costly mistakes and problems. For example, misstatements on insurance applications may result in a higher premium or even the rescission of a policy based on wrong information. Call your underwriter or agent with questions about the application and the information requested. A phone call is an easy way to correct errors before they occur.

Do not hesitate to contact our professional liability team at Paragon to work with you in protecting your business. We make it our mission to help you manage the risk and avoid a catastrophic situation.

As an attorney, we know that you put your heart and soul into your law practice. You spend much time, energy and care in representing your clients. 99% of your clients are going to be grateful to you for your hard work and your dedication to them. However, there remains the 1% of clients who will turn around and sue and/or grieve their attorney. Sometimes this lawsuit or grievance is initiated several years following the conclusion of your work on their behalf.

Without sufficient professional liability insurance, all your hard work can quickly be for naught. Unfortunately, we have seen the horror stories of attorneys who work their entire career and then they’re left unprotected when a client sues them for professional negligence or “malpractice”. Everything they worked for leading up to that point – their clients, their assets, their REPUTATION – are all in jeopardy.

Paragon’s clients know that they work too hard to risk throwing it all away when one client takes them to court for malpractice. It is essential to have the proper, paid-up professional liability insurance so that you are protected in the unfortunate situation when a distraught client tries to make you pay for their disappointment. The many clients who praise your devotion as an attorney won’t mean anything when you lose everything. Call Paragon Underwriters today to discuss how we can help you be insured and protected in case of an unforeseen litigation by a current or former client. We put our decades of experience at work for you — to protect you, your property, your people and your practice.

It’s hard to believe that the year 2018 is almost over and planning for 2019 has already begun. Paragon Underwriters is a third generation business and has been serving attorneys for decades, but we still think of ourselves as a startup. The reason is that it keeps us thinking up new and fresh ways to innovate and improve. The insurance industry is constantly changing and we see it as our mission to keep ourselves a few steps ahead of the pace. As they say, “Be the lead dog or enjoy the view.”

Our insurance products are constantly evolving to meet the needs of our clients. But as we constantly strive to improve your experience, the recent Thanksgiving holiday gave the team at Paragon a chance to step back, reflect and count our blessings. We are so very grateful to our clients, who have put their trust in us since we first opened our doors as an insurance agency in 1974 when my grandfather Alex Lipson launched our firm. Over the past 45 years, we’ve learned so much and met so many amazing people; we are enormously grateful for each and every one of you. During this holiday season, we wanted to take a moment to say “Thank You” for helping to make the past 45 years, and 2018 in particular, such a big success for Paragon Underwriters.

Insuring thousands of attorneys in Michigan and throughout the United States is something we take very seriously. The gratitude we receive when a client is protected from a malpractice lawsuit or attorney grievance is truly all the thanks we need. Insurance isn’t an investment that lawyers want to make, but it’s necessary to protect yourself in today’s legal environment. We know that there are choices your law firm has to make when it comes to professional liability insurance and we appreciate you choosing us.

During this winter holiday season, we give thanks to all the good we have in our lives. The Paragon Underwriters team is grateful for our company, but we recognize that there is so much more for which we must be thankful. We hope you can take some time for family and friends during the winter holiday season. Eat, drink, watch football and throw in some holiday shopping. Thank you all again. And from the Lipson family and the entire team at Paragon Underwriters, we wish you a joyous and blessed holiday season and a successful ending to 2018.

There’s a longstanding history of professionals who think the worst could never happen to them. Unfortunately, this is why so many successful individuals fail to buy life insurance policies to protect their survivors after they die. Sadly, the same is often true when it comes to professional liability insurance. It’s human nature to think that bad things won’t happen to us.

If local Michigan attorneys needed any convincing evidence that they should obtain the best malpractice insurance available to them they should look no further than a recent case in Metro Detroit. A local man has successfully sued his Bloomfield Hills attorney for $13.1 million. As was quoted on the Channel 4 News, “When someone has a legal dispute, they usually hire a lawyer. But what happens when the dispute is with their lawyer or law firm?”

A Metro Detroit businessman went to court to sue his own attorney and wound up winning one of the largest payouts in such a case in Michigan history. The case had to do with an inventor who was due millions for his technology invention that all the computer companies were using. His lawyer advised him to hold out for more money (over $1 billion) and the client ultimately spent $1 million in legal fees for nothing. The client hired another attorney and successfully sued his former attorney for malpractice.

Many lawyers enjoy wonderful relationships with their clients and never imagine a client turning around and suing them for malpractice. However, this happens much more than you would think. A proper professional liability insurance policy is essential for all attorneys, regardless of your specialty. Contact the team at Paragon Underwriters today to re-enroll or learn about your options for malpractice insurance coverage. We put our decades of experience to work for you.

In the 21st-century organizations are embracing collaboration. Collaboration doesn’t only benefit the organizations; it also benefits their clients and customers. An example of this would be showing your health insurance card at the local sporting goods store and receiving a discount off your purchases. In the case of the new collaboration between Paragon Underwriters and the Institute of Continuing Legal Education (ICLE), Michigan’s attorneys will benefit greatly. It is for this reason that Paragon began discussions with ICLE nearly three years ago to explore opportunities for synergy and collaboration.

The result of those discussions has finally come to fruition: ICLE customers who are CNA Lawyers’ Professional Liability (LPL) policyholders are now eligible for premium cost reductions up to 25%. (Credits apply to qualifying firms in the form of premium credits). ICLE recently contracted with CNA and Paragon Underwriters to provide a number of malpractice risk management premium credits to new and existing customers to reduce the cost for their LPL coverage.

Since 2007, Paragon has been the exclusive source for the CNA Lawyers’ Professional Liability Program in Michigan for law firms with less than 35 attorneys. “Paragon Underwriters is thrilled to participate in this new initiative with CNA and ICLE. It’s truly a game changer for Michigan law firms and we are very proud that it’s available only through Paragon, CNA’s trusted representative here in Michigan” said David  Lipson, Paragon President and CEO. “We believe all Michigan lawyers will find tremendous value in this new program and look forward to helping many firms benefit from the superior coverage offered by CNA along with the savings offered by the new CNA-ICLE-Paragon synergy.”

“ICLE has always been committed to helping customers with every aspect of their practice. We know that it’s tough out there, especially for the lawyers who are just starting out. We’re excited that our practice resources can now be of further help,” said David Watson, ICLE Executive Director.

“CNA is the market leader in Lawyers Professional Liability, with more than 60 years’ experience, and our data confirms that the more a lawyer engages in meaningful continuing legal education and risk control support, the better they can serve their clients,” said Michael Furlong, Esq., Vice President, Underwriting, CNA. “We’re excited to be able to reward Michigan lawyers who are pursuing excellence through ICLE.”

Qualified Michigan customers are eligible to receive the following credits against their Lawyers’ Professional Liability insurance policy:

1. Be an ICLE Partner – ICLE Partners save up to 7%. The longer you’re a Partner the more you save.
2. Complete an ICLE certificate – choose an entire practice area or a specific topic and save up to 7%.
3. Attend an ICLE event – annually attend any of our major Institutes and save up to 2%.
4. Be an ICLE Volunteer Contributor – join hundreds of your colleagues and help us with a seminar, book, or another online resource to save up to 7%.
5. CNA Risk Control participation – ICLE customers who also participate in CNA specific risk management initiatives can save an additional 2%.

The above credits can be combined for premium cost reductions up to 25%* and are applicable each year that an attorney remains involved with ICLE and insured with CNA.

The collaboration launched September 1, 2018. Full information about opportunities can be found at www.icle.org/cna. Individual lawyers and law firms interested in the offers should contact Paragon Underwriters directly at 248-851-3066 or www.ParagonUnderwriters.com/ICLE.

*Potential savings are determined by the specific lawyer and his or her practice. Savings are applied only to the individual, not a firm. Savings can only be obtained by providing a current eligibility report found in the ICLE My Account area at www.icle.org.

Our Paragon Underwriters team recently returned from several industry conferences around our great State of Michigan. One thing that remains clear to us when we talk with colleagues, attorneys and law firm administrators about professional liability insurance coverage is “Experience is Everything.” Most insurance agencies in Michigan don’t understand legal liability and rarely (if ever) work with attorneys to secure Lawyers malpractice insurance policies. They don’t specialize in it as we do. They don’t do it all day every day as we do. At Paragon Underwriters, we put malpractice insurance for Michigan’s lawyers front and center, and we have the decades of experience that make us the experts in this field. That high level of experience benefits our clients and helps us continue to lead the pack for insuring lawyers all over Michigan.

In 1974, a math teacher named Alex Lipson started our firm. Years later, Alex’s son Ken teamed up with his father to build a highly-specialized agency based upon trust, transparency and commitment to personal service. Today, the 3rd generation continues the Paragon tradition of excellence. David Lipson has built upon his grandfather and father’s legacy to continue to help attorneys protect themselves against malpractice. As President of the agency, David Lipson is keenly aware that Paragon’s experience is everything to clients. Professional malpractice insurance is a niche in the insurance industry and there are very few agencies around the country that truly focus on this. That is where Paragon truly stands out.

David Lipson and the Paragon Team understand Michigan’s legal community and are actively developing programs to help Michigan firms improve their practices, decrease their malpractice exposure and then reward them with lower insurance premiums. Through our new affiliation with The Institute of Continuing Legal Education (ICLE), lawyers and law firms can save big on their CNA Lawyers Professional Liability insurance. For small Michigan firms, CNA is only available through Paragon Underwriters. Learn more at www.ParagonUnderwriters.com/ICLE

Paragon has been CNA’s Exclusive State Administrator for Michigan law firms with less than 35 attorneys for more than a decade. CNA is the nation’s largest writer of legal malpractice insurance for law firms and offers the broadest policy language available in Michigan. Why did CNA choose Paragon? Because we have the experience… and experience is everything.

Take advantage of our experience. Make the right call and call the experts at Paragon today to learn about professional liability insurance plans that will protect you, your practice and your reputation.