Kaestner & Berry Professional Insurance Services, LLC

Kaestner & Berry Professional Insurance Services, LLC Kaestner & Berry specializes in malpractice insurance for law firms in Missouri, Southern Illinois, Kansas, and Tennesse.

We also handle Cyber Liability insurance and Surety Bonds.

10/04/2022

Kaestner & Berry works with many different underwriters to obtain the best coverage and pricing for you! Underwriters have different guidelines, however, in the big picture they charge based on the following criteria at your firm:

1. The number of attorneys that will be insured at the firm. (A few underwriters also charge for paralegals).

2. The hours that the attorneys work for the firm. Most underwriters provide some type of discount for “part time” attorneys. This discount will differ from underwriter to underwriter.

3. Area of Practice. The underwriters charge a different rate based on the type of practice that you have. For example, criminal law is statistically a very low risk area of practice. As a result, the more time you identify as practicing in this area of law, the lower your premium will be for. Some other areas of practice, certain underwriters will not even provide a quote. A typical example is that many underwriters will not write a plaintiff firm that does medical malpractice work.

4. Claims and disciplinary issues. The underwriters differ greatly on how they handle claims and disciplinary issues. We have worked on many difficult accounts to obtain the best rate for our clients in these situations.

5. Geography. All underwriters have a different rate based on the state out of which your law firm practices. Some underwriters have different rates for certain “high risk” cities within the state. So if a friend in a different county tells you of a carrier offering a great rate, be alert to the fact that you may not receive a similar great rate.

6. Office procedures are important. Procedures such as a dual calendar system, a conflict check system and not suing clients for fees, help keep your premium low.

As an independent agency, we are working for your law firm. Our goal is to match your firm to the carrier that will best suit your needs.

11/02/2021

Cyber Risk Increase for Law Firms

Over the past 20 months, law firms have become a top 5 industry target for cyber actors/criminals, right behind financial institutions, healthcare, and educational organizations.

The sustained onslaught of cyber-attacks including ransomware, email compromises, and social engineering have dramatically driven up claims and incident costs and have either forced many insurers to raise rates, reduce capacity and in many cases, pulling out of providing cyber insurance for law firms.

According to one carrier that specializes in cyber coverage for law firms, the increase in the type of cyber claims has been as follows:
1. Ransomware – The number of ransomware infections increased by 207% and the number of ransomware infections resulting in data exfiltration increased by 396%
2. Social Engineering – The number of social engineering incidents increased by 153%
3. Business Email Compromise – The number of compromises increased by 46%
4. Data Breach – The number of breaches (non-ransomware related) increased by 41%

These increases are significant and highlight the risk that law firms face from a cyber claim. If you are interested in a quote to protect your firm from a cyber risk, contact Kaestner & Berry.

07/29/2021

The “Step Rate” Increase

Lawyers buying malpractice insurance for the first time are surprised when their premium goes up year over year when nothing seems to change. This increase is on account of a standard insurance industry practice known as a Step Rate.

What is a Step-Rate increase?
The first year your firm has a professional liability policy, your coverage only includes the current year of legal work. As a result, the underwriter actually provides a discount. After the first year renewal, your premium will increase as the policy covers an additional year of legal work. The increase is a result of the underwriter gradually reducing the discount.

How long does Step-Rating last?
Step rating typically ends in 5-7 years depending on various factors, including the state in which you are located. You cannot avoid the impact of step rating by switching carriers as almost all carriers use step rating.

What else is making my rates change?
Changes in limits, deductible, areas of practice, number of attorneys, claims, changes in firm procedures as well as a carrier’s change in underwriting guidelines could impact your premium.

06/29/2021

EPLI (Employment Practices Liability) Risk

Have you considered your risk for an EPLI claim? EPLI claims are on the rise. In 2017, there were 84,000 charges filed with the EEOC. The median judgement for employment law suits that went to trial in that year was $106,800.00. The mean award was $375,162. In 2017, there were 12,000 plus claims. Over $350,000,000 in employment related claims were paid that year.

Since 2017 a lot has happened. There are several different situations in the new post COVID-19 workplace, which can result in a potential EPLI claim.

1. Employers who lay off employees and/or recall other employees may face discrimination claims.

2. Employees transitioning back to work in the workplace may give rise to employment claims regarding accommodating disabilities and religious practices.

3. COVID-19 relief bills provide two new causes of action for failure to provide paid sick and family leave, and retaliation after the use of paid sick and family leave.

4. Vaccination requirements and incentives can give rise to disability and religious discrimination.

*Info from The Professional Liability Underwriter Society – “COVID-19 EPLI Update”

Kaestner & Berry is proud to introduce a “starter” EPLI policy from Safe Talent. The company has an A+ AM Best rating. It is designed for small to medium size law firms.

In most cases, the application consists of just 3 questions. The policy limits are $250,000. The deductible is $10,000. Pricing is based on the number of employees at the firm.

Number of Employees Approximate Total Cost
1 to 5 $1,450
6 to 10 $2,050
11 to 20 $2,600
21 to 30 $3,300

Contact your Kaestner & Berry representative for details.

06/29/2021

The Times They Are a Changing

Lyrics from the Bob Dylan song:
“Come gather ‘round people, wherever you roam, and admit that the waters around you have grown, and accept it that soon you’ll be drenched to the bone, if your time to you is worth savin’, and you better start swimmin’, or you’ll sink like a stone, for the times they are a-changin’”

Yes, 2021 is ushering in a number of changes for all of us. If your practice is changing, here is a list of high risk areas of practice that may impact your malpractice insurance coverage.

1. Cannabis Representation – Nationwide the insurance and financial industries have not been able to reconcile an industry that is illegal at the federal level and legal in many states. As a result, pricing is high, if available, even for lawyers who are just giving advice to these businesses.

2. Plaintiff Class Action and Mass Tort work and to a lesser extent defense work in this area. Almost universally class action and mass tort are viewed as a high risk. Many underwriters will not write a firm doing this work.

3. Medical Malpractice Plaintiff Work – Traditionally, a high claim area of practice.

4. Collection Work

5. High Volume Estate Work – Claim statistics are showing an increase in severity in this area of the law.

6. High Value Family Law – Claim statistics are showing an increase in severity.

7. IP Work – Viewed as extremely high risk. Many underwriters will not provide terms for a firm doing this type of work.

8. Securities Work – High severity.

We are not suggesting that you not take on these representations for your clients, however, you should be aware that adding these areas of practice to the work performed at your firm will likely have an impact on your malpractice insurance costs.

If there are any questions, please contact your Kaestner & Berry representation for assistance.

At Kaestner & Berry we are independent agents who specialize in helping law firms meet the challenges of a changing world.

06/17/2021

Thinking you don’t need malpractice insurance? Consider this…

You’re good at what you do. You care about your clients and have a high level of expertise to serve them well. But did you know that communication errors account for more than one-third of legal malpractice claims over the past 11 years? Deadline and time management issues are the cause of the second most common malpractice claims.

Those types of errors could happen to anyone, regardless of your years in practice or the size of your firm.

Many practitioners are tempted to forgo malpractice insurance, especially as start-ups. They just never consider they might someday end up on the other side of a claim. But not protecting yourself from the simplest, unintended misstep can have grave financial consequences for you and your law practice.

Here are the top reasons why legal malpractice insurance is so important:

• The ABA estimates that five to six percent of all attorneys will face a malpractice suit every year.
• The cost of defending against a malpractice claim far outweighs the cost of malpractice insurance.
• Disclosure requirements are changing.
• It is possible for a victim of malpractice to recover damages, even if you are not insured.

Professional Liability insurance will protect the assets of your law firm, as well as your personal assets. It protects your clients—and you—should you, or a staff member, make a mistake. And most professional liability insurance policies also provide disciplinary coverage, which may help you with the resources to protect and defend your license should the need arise.

Important considerations to keep in mind when shopping for legal malpractice insurance:

1. Does the policy you’re considering include a “retroactive date” for prior acts coverage?
2. Does the policy provide coverage for former and current non-attorney employees? What about independent contractors?
3. Does the policy cover innocent partners in cases where one member of the firm hasn’t complied with the conditions?
4. Are you aware of the AM Best rating of the insurance company? And how the rating can potentially impact the financial security of your firm?
5. Did you know that continuous malpractice coverage is important since an error may not be discovered for a number of years?

Choosing the right policy for you and your firm is complex. There’s a lot to consider. It’s not just about premiums and coverage limits. It’s important to be sure that your policy covers all possible scenarios to ensure your protection.

You can trust the experienced, expert professionals at Kaestner & Berry to know the right questions to ask and help you get the coverage you need!

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St. Louis, MO
63128

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