Frequently, the insured employer is required under the EPL policy to be represented by panel counsel. If the employer’s law firm of choice is not on the panel, the law firm can lose the right to represent their own client. Since litigation is typically one of the most lucrative actions in employment law, the loss hurts financially as well as from a client relationship perspective.

Being a pre-approved panel member with the carrier that provides EPL coverage to a client is clearly an ideal situation. Getting on an employment practices liability panel can be quite difficult, however, and may or may not be an option.

One way to minimize this risk is to try to get named as counsel of choice in the client’s EPLI policy. This process is frequently known as an “accommodation,” and is typically handled by the insurance agent or broker. Employment defense law firms are also advised to informally survey all employer clients to identify the status of EPL coverage.

Click on the link to read our latest insurance defense white paper, titled “Panel Counsel Considerations in Employment Practices Liability Insurance (EPLI).”

Author Margaret Grisdela understands how difficult it can be for an insurance defense law firm to get on an insurance panel. You can reach her at 561-266-1030 or via email.

Ronald Parisi, executive vice president of risk management at CAMICO reports that wealthy business owners are among those most likely to sue over tax advice.

Common triggers for accountant malpractice professional liability claims include missed tax filings, miscalculated state income taxes, and federal estate-tax errors.

The Journal reports:

In a recent case of CAMICO’s, a doctor sued a certified public accountant and a financial adviser after losing his life savings–around $7 million–investing in alternative assets. The adviser had wrongly assured the doctor that the assets were guaranteed by a certain bank. The CPA was named in the lawsuit because he had referred the doctor to the adviser.

CAMICO paid the doctor a “substantial” amount when the case was settled out of court, according to Mr. Parisi.

Wondering How to Get on an Insurance Panel?
Insurance defense marketing consultant Margaret Grisdela is available to discuss  business development campaigns for insurance defense law firms interested in professional liability, employer practices liability (EPLI), and a wide range of other insurance defense matters. Contact her by phone at 1-866-417-7025 or send an email.

One requirement of the bill is that insurers must identify “How the insurer encourages its employees involved in procurement to seek out minority, women, and disabled veteran-owned business enterprises to become potential suppliers.”

There are likely to be new opportunities for minority law firms to get on an insurance panel in California, as insurers providing coverage in California scramble to review their mix of outside legal counsel. The law applies to each “admitted insurer,” many of whom will be national insurance carriers headquartered outside of California.

The text of the bill reads, in part:

Existing law requires each admitted insurer to provide information to the Insurance Commissioner on all of its community development investments and community development infrastructure investments in California.

This bill would require that each admitted insurer with premiums written equal to or in excess of $100,000,000 submit to the commissioner, by July 1, 2013, a report on its minority, women, and disabled veteran-owned business procurement efforts, as specified. The bill would provide that the failure to file the report by July 1, 2013, subjects the admitted insurer to civil penalties to be fixed and enforced by the commissioner, as provided.

The bill would require, among other things, that commencing July 1, 2015, each eligible admitted insurer biennially update its supplier diversity report and submit a new report, containing additional elements, to the commissioner no later than July 1.

The bill would require that, by July 31, 2013, the commissioner establish and maintain a link on the department’s Internet Web site that provides public access to the contents of each admitted insurer’s report on minority, women, and disabled veteran-owned business procurement efforts.

Wondering How to Get on an Insurance Panel?
Insurance defense marketing consultant Margaret Grisdela is available to discuss  business development campaigns for insurance defense law firms interested in employer practices liability (EPLI), professional liability and a wide range of other insurance defense matters. Contact her by phone at 1-866-417-7025 or send an email.

1. Mercy General Hospital (Sacramento, CA) will pay $168 million in a sexual harassment lawsuit judgment.

2. ArcelorMittal (Buffalo, NY) will pay $25 million in a race discrimination lawsuit judgment.

3. Dr Pepper Snapple Group (Chicago, IL) will pay $18.3 million in an age discrimination lawsuit judgment.

4. YRC/Yellow Transportation (Chicago Ridge, IL) will pay $11 million to settle an EEOC race harassment and discrimination lawsuit.

5. Tesoro Refining and Marketing Company (Los Angeles, CA) will pay $8.5 million in a disability discrimination lawsuit judgment.

6. Cook County (Chicago, IL) will pay $7.6 million in a race discrimination lawsuit judgment.

7. Lennox Industries (Richardson, TX) will pay $6.2 million to settle an age discrimination lawsuit.

8. Aaron’s Inc. (Fairview Heights, IL) will pay $6 million to settle a sexual harassment lawsuit.

9. Sears (Sacramento, CA) will pay $5.2 million in a race discrimination lawsuit judgment.

10. AT&T (Kansas City, MO) will pay $5 million in a religious discrimination lawsuit judgment.

11. Chrysler (Belvidere, IL) will pay $3.8 million in a race and religious discrimination lawsuit judgment.

12. Passaic County (Passaic County, NJ) will pay $3.7 million in an age discrimination lawsuit judgment.

13. D.C. Department of Parks and Recreation (Washington, DC) will pay $3.5 million in a sexual harassment lawsuit judgment.

14. Rite Aid (Los Angeles, CA) will pay $3.5 million in a disability discrimination lawsuit judgment.

15. Pepsi (Minneapolis, MN) will pay $3.13 million to settle an EEOC race discrimination lawsuit.

16. CSX Transportation (Danville, WV) will pay $2.6 million in a sexual harassment lawsuit judgment.

17. Qwest Communications (San Francisco, CA) will pay $2.3 million in a sexual harassment lawsuit judgment.

18. Fry’s Electronics (Seattle, WA) will pay $2.3 million to settle a sexual harassment lawsuit.

19. Hoffmann-La Roche (Las Vegas) will pay $1.9 million in an age discrimination lawsuit judgment.

20. US Department of Veterans Affairs (Union Grove, WI) will pay $1.8 million in a retaliation lawsuit judgment.

21. Mary Ann’s Mexican Restaurant (New York, NY) will pay $1.6 million in a sexual orientation and religious discrimination lawsuit judgment.

22. Clallam County (Seattle, WA) will pay $1.6 million to settle an age discrimination lawsuit.

23. City of Burbank (Burbank, CA) will pay $1.3 million in a retaliation lawsuit judgment.

24. Henry’s Turkey Service (Goldthwaite, TX) will pay $1.3 million to compensate former employees in a disability discrimination lawsuit judgment.

25. Ferguson Enterprises (Detroit, MI) will pay $1.2 million in a sexual harassment lawsuit judgment.

During the past year, workplace harassment and discrimination complaints have cost employers over $356 million in lawsuit settlement payments and judgments for monetary damages, according to the eBossWatch report.

Sexual harassment was the most common type of workplace complaint that led to the employer paying a sizable settlement or jury award.

Read the full story, “National Boss Day Report: Employers paid over $356 million for workplace harassment and discrimination complaints.” Visit eBossWatch.

Wondering How to Get on an Insurance Panel?
Insurance defense marketing consultant Margaret Grisdela is available to discuss  business development campaigns for insurance defense law firms interested in employer practices liability (EPLI), professional liability and related defense matters. Contact her by phone at 1-866-417-7025 or send an email.

Last year Commissioner Jones ordered the top six medical malpractice insurance companies in California to submit rate filings to the Department of Insurance to justify their current rates. After a thorough review of those filings, Commissioner Jones called for rate reductions. As a result of the Commissioner’s rejection of excessive rates, all six companies lowered their medical malpractice rates.

“I’m pleased the medical malpractice rates are continuing to be decreased under the Department’s rate review process and authority,” said Commissioner Jones. “These medical malpractice rate reductions show the important role that Proposition 103, which authorizes the insurance Commissioner to reject excessive rate hikes for property and casualty insurance, including medical malpractice insurance, has played in curbing medical malpractice rates since it was passed in 1988.”

NORCAL Mutual Insurance Company is the second largest medical malpractice writer in California with $135 million of earned premiums in 2011.

Earlier this year the company joined the following companies in lowering rates, at the direction of the Insurance Commissioner, for a total savings to medical providers of $52 million:

• NORCAL Mutual Insurance Company (August reduction) – $8.5 million
• NORCAL Mutual Insurance Company (March reduction) – $9.65 million
• Medical Protective Company – $3 million
• Doctors Company, An Inter-Insurance Exchange – $21 million
• The Dentists Insurance Company – $4 million
• The Medical Insurance Exchange of California – $5.3 million
• NCMIC Insurance Company – $500,000

Wondering How to Get on an Insurance Panel?
Insurance defense marketing consultant Margaret Grisdela is available to discuss  business development campaigns for insurance defense law firms interested in professional liability and related defense matters. Contact her by phone at 1-866-417-7025 or send an email.

Survey respondents across the country were asked to rank states for their overall treatment of tort, contract, and class action litigation. The survey sponsor cautions that courts and localities within a state may vary a great deal in fairness and reasonableness. Insurance defense lawyers can compare the litigation climate in their own state with the research results.

Delaware, according to those surveyed, has the best legal climate for businesses. Other top spots go to Nebraska, Wyoming, Minnesota, Kansas, Idaho, Virginia, North Dakota, Utah and Iowa. Click on the link to see all top rankings of state liability systems.

Cities, states or counties with the least fair and reasonable litigation environment include:

• Chicago/Cook County, Illinois
• Los Angeles, California
• California (unspecified)
• San Francisco, California
• Philadelphia, Pennsylvania
• Madison County, Illinois
• Texas (unspecified)
• New York (unspecified)
• Miami/Dade County, Florida
• New Orleans/Orleans Parish, LA
• Mississippi (unspecified)
• Louisiana (unspecified)

Click on the link for overall rankings of state liability systems.

State rankings are based on the following factors:

• Overall treatment of tort and contract litigation
• Having and enforcing meaningful venue requirements
• Treatment of class action suits and mass consolidation suits
• Punitive damages
• Non-economic damages
• Damages
• Timeliness of summary judgment or dismissal
• Discovery
• Scientific and technical evidence
• Judge impartiality
• Judge competence
• Jury fairness
• Jury predictability

According to the Institute for Legal Reform, the survey reveals that the litigation environment in a state is likely to impact important business decisions, which could have economic consequences for the states. The challenge for the states is to focus on areas where they received the lowest score and then make improvements where they are needed.

Participants in the survey were comprised of a national sample of 1,125 in-house general counsel, senior litigators or attorneys, and other senior executives who indicated that they are knowledgeable about litigation matters at companies with at least $100 million in annual revenues. The survey was conducted by Harris Interactive.

The site Media Matters for America offers an opposing perspective in a post titled “Media Misses the Flaws in Discredited State Courts Survey.”

Read the Institute for Legal Reform press release.

Defense Costs
Insurers and self-insurers paid $140.5 million to defend 3,306 claims, or an average of $42,494 per claim. After two years of declining, average defense costs are up to $40,988 for claims closed in 2011 compared to $36,994 in 2010, but this is still below the $43,114 average for 2009 and well below the $49,421 spent per claim closed in 2008.

Payments and defense costs by age of claim:

• The amount paid to claimants increased with the age of the claim. Of the 1,818 claims closed with an indemnity payment, the 626 claims closed within one year after report date had average paid indemnity of $66,907. That figure rose to $243,890 for 533 claims closed in their second year. The 32 claims that closed six or more years after report date had average paid indemnity of $753,367.
• The amount paid for defense costs also increased with the age of the claim. Of the 3,306 claims closed with defense costs, 872 closed within one year after report date and had an average defense cost of $6,197. That figure rose to $26,286 for 1,158 claims closing in their second year. The 50 claims that closed six or more years after report date had an average defense cost of $194,519.

Payments by type of medical provider
The insurer or self-insurer identified the type of medical provider in 84.6 percent of the closed claim reports.13 Claimants made the remaining claims against an organization – not an individual medical provider.

• Nursing resulted in the most closed claims at 429. Of these claims, 271 resulted in paid indemnity, averaging $132,984. Median paid indemnity was $30,000.
• For physician specialties, General/Family Practice had the most claims at 263, with 107 resulting in paid indemnity, averaging $199,511. Median paid indemnity was $87,500. Urological surgery had the highest average paid indemnity of $559,536, with median paid indemnity at $170,000. Obstetrics and gynecology had average paid indemnity at $520,607, and median paid indemnity was high at $350,000.

Allegations

• Improper performance was the most common allegation. This allegation resulted in 714 claims and 344 indemnity payments that averaged $173,616.
• Failure to diagnose was the second most common allegation. This allegation resulted in 348 claims and 123 indemnity payments that averaged $425,854.

Compensation to Claimants
Attorneys reported that claimants received total compensation of $284 million on 410 claims, or $692,881 per settlement. Attorney fees were $102.0 million, or an average of $248,719 per settlement with an indemnity payment. On average, the attorney fee was 35.9 percent of the total compensation paid to the claimant.

Settlement by Age of Claimant
The most expensive settlements involved newborns and infants. In these cases, the average settlement was $2.2 million and the average legal expense was $895,370.

Medical Professional Liability Rates Declined for Physicians and Surgeons
Physicians Insurance, Washington state’s largest provider of medical professional liability insurance for physicians and surgeons, reduced its rates by 7.7 percent in 2005, 12.5 percent in 2008, and by another 10.0 percent in 2009. The Doctor’s Company reduced its rates by 5.1 percent in 2011 and 6.6 percent on July 1, 2012.

Read the full 2012 Medical Malpractice Annual Report.

Wondering How to Get on an Insurance Panel?
Insurance defense marketing consultant Margaret Grisdela is available to discuss  business development campaigns for insurance defense law firms interested in professional liability and related defense matters. Contact her by phone at 1-866-417-7025 or send an email.

Topics of interest to claims executives and insurance panel managers include:

• In-house challenges — how can business opinions be protected as privileged?
• Recent disturbing developments in privilege
• Practical and legal issues in transitioning to the world of electronic documents
• Mastering communications — bridging the generation gap when the adjuster and the lawyer need to effectively communicate with each other
• Law firm project management — LEAN/Six Sigma for lawyers
• Cost containment solutions in law firm management of electronic discovery
• Managing claims with contractual indemnity, additional insureds and the overlapping issues
• Document retention — maintaining, updating, monitoring and executing
• Staff motivation in the age of RFIs — assuming, juggling and prioritizing extra responsibilities
• Effectively managing “green litigation” — how is it different and how should it be managed?
• Turning green — what happens when the product does not live up to its green expectations?
• Obamacare and your business — what the experts think it means to all of us
• Are homeowners/borrowers third-party beneficiaries under lender placed policies of insurance?
• Rendering medical assistance (AEDs, CPR, etc.) — does the public’s perception/demand create a liability for companies
• Top 10 reasons companies change defense firms and the top 10 ways you can “wow” the company to get on the list
• Torts in sports: If football helmets are not enough protection, what can be done?

Proposals are due by September 14, 2012. Click on the link to read more about the CLM Call for Speakers.

If you are with an insurance defense law firm and a CLM member, this is a great opportunity for new business development. Contact Margaret Grisdela at 1-866-417-7025 for other ideas on insurance defense marketing campaigns.

“Economic uncertainty continues to be a dominant issue for the construction industry. There has been little growth in employment, and government funding for projects continues to waver,” according to the report. Other highlights of the Marsh report are summarized below.

Construction firms that proactively distinguish their risk profiles from their peers are best positioned to secure more favorable terms, conditions, and pricing when renewing commercial insurance policies, according to the report. This may be an area where insurance defense lawyers can assist self-insureds in evaluating their legal risks.

Builders Risk

Builders risk insurance capacity remains stable. For projects without significant catastrophe (CAT) exposure, there is an abundance of builders risk capacity available. The amount of available capacity has kept rates generally flat. Capacity has been reduced in certain locations where there is CAT exposure, resulting in rate increases, typically in the range of 10 percent to 20 percent.

Professional Liability

The market for contractors professional liability remains competitive, with newer market entrants aggressively pursuing new business. Incumbent insurers are looking to maintain existing rates or achieve slight increases. Revenues are trending up for many contractors, contributing to year-over-year premium increases.

Rates in the architects and engineers markets are increasing, with most underwriters now seeking to achieve increases in the 5 percent to 15 percent range regardless of a firm’s loss record.

GL Wraps

General liability wraps remain competitive, except in the state of New York, where deductibles of $1 million and excess attachment points of $5 million or $10 million are common, driven by claims arising out of Labor Law 240.

Project-Specific General Liability (GL)

The market for project GL is competitive in most states, marked by enhanced coverage and abundant capacity.

Want to Get on More Construction Insurance Panels?

Insurance defense marketing consultant Margaret Grisdela is available to discuss  business development campaigns for insurance defense law firms interested in construction defect panels and related defense matters. Contact her by phone at 1-866-417-7025 or send an email.

Validus reported capital and surplus exceeding $3.3 billion on their most recent year-end financial statement as of December 31, 2011, which exceeds the $250 million requirement under Section, 624.610(3)(e), Florida Statutes. The reinsurer also indicated secure financial strength by demonstrating favorable ratings from two statistical rating organizations deemed acceptable by the Commissioner as having experience and expertise in rating insurers doing business in Florida.

Florida was the first state to allow ceding insurance companies to receive full credit on their financial statements for reinsurance purchased from non-U.S. based reinsurers that are highly rated and financially sound.  A Florida’s Eligible Reinsurers page is available on the Office’s website with consent orders and press releases for all approved eligible reinsurers.

Other eligible reinsurers in Florida include (in alphabetical order):

• Ace Tempest Reinsurance Ltd.
• Allied World Assurance Company, Ltd.
• Alterra Bermuda Limited
• Arch Reinsurance Ltd.
• Ariel Reinsurance Company Ltd.
• Aspen Insurance Limited
• Axis Specialty Limited
• DaVinci Reinsurance Ltd.
• Endurance Specialty Insurance, Ltd.
• Hannover Re (Bermuda) Ltd.
• Hannover Ruckversicherung AG
• Hiscox Insurance Company (Bermuda) Limited
• Montpelier Reinsurance Ltd.
• Partner Reinsurance Company Ltd.
• Platinum Underwriters Bermuda, Ltd.
• Renaissance Reinsurance Ltd.
• Tokio Millennium Re Ltd.
• Underwriters at Lloyd’s, London
• XL Re Ltd.

Want to Get on More Insurance Panels?

Insurance defense marketing consultant Margaret Grisdela is available to discuss  business development campaigns for insurance defense law firms.