Situation: Two weeks prior to coverage expiration, a law firm submitted their professional liability renewal application with a notice of an unusually large number of claims that had not yet been submitted. With this late communication of significant anticipated claim activity, the insurer lost confidence in the client and refused to offer renewal terms. The firm was left with seven days to replace coverage, close the practice at least temporarily, or incur the imprudent risk of practicing without professional liability insurance.
MGW Response: Given its strong relationship with the insurer, MGW immediately secured a 60-day extension to enable the firm to continue uninterrupted activities with adequate coverage. MGW then developed a 2-tiered plan to build an insurer confidence-restoration infrastructure at the client and create a competitive marketplace among insurers. MGW designed a continuing education program for the client, focusing on risk management and claims processing to reduce future exposure and improve claims administration. MGW now had a viable story to tell of significant modifications that the firm had made to its practice management. Simultaneous to designing the client’s continuing education program, MGW, with its extensive market contacts, successfully encouraged other insurers to also provide coverage terms.
MGW was able to restore the incumbent insurer’s confidence while also attracting other insurers, thereby creating a competitive marketplace for their client. A new contract was secured well within the 60-day period. Claims have been reduced and coverage uninterrupted.