Risk Management Credit
Key Takeaway
A premium discount offered by carriers to law firms that implement specific risk management practices such as formalized intake procedures, conflicts-checking systems, calendaring protocols, continuing legal education beyond minimums, and client communication standards. Credits typically range from 5 to 15 percent of the base premium..
Definition
A premium discount offered by carriers to law firms that implement specific risk management practices such as formalized intake procedures, conflicts-checking systems, calendaring protocols, continuing legal education beyond minimums, and client communication standards. Credits typically range from 5 to 15 percent of the base premium.
Why This Matters for Law Firms
Underwriting terms determine what you pay for coverage and what terms you receive. Law firms that understand the underwriting process can present their risk profile more effectively, negotiate better terms, and avoid surprises at renewal. This knowledge is particularly valuable when shopping for new coverage or responding to carrier questions.
Example Usage in Context
A firm preparing for its annual insurance renewal might encounter this in the carrier's proposal: "The underwriter has adjusted our risk management credit based on our claims history. Let's discuss with our broker whether we can improve this at our next renewal."
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