Lawyer Malpractice Insurance
David D. Hudgins, chair
ALPS Property & Casualty Insurance Company is the VSB’s endorsed professional liability insurance carrier. The Special Committee on Lawyer Malpractice Insurance (LMIC) continued its overview of ALPS’s risk management endeavors during FY2016.
In FY2016, the LMIC met four times: September17, 2015, November 17, 2015, February 18, 2016, and May 12, 2016. At each of those meetings, the LMIC received a report from Chris Newbold, Executive Vice President regarding ALPS overall results and ALPS results in Virginia. ALPS contributed 3 percent of its Virginia gross written premium in calendar year 2016, or $290,359.02, to support a variety of ALPS risk management activities in Virginia. The 3% is a condition of ALPS endorsement agreement with the Virginia State Bar, permitted by statute. The money is held and spent by ALPS in a risk management program in Virginia overseen by the VSB Special Committee on Lawyer Malpractice Insurance.
In the first quarter of 2016, ALPS had assets of $108,582,064 million with policyholder surplus of $36,978,088. The Virginia book had $3.4 million of gross written premium and net written premium of $2.29 million. Virginia’s net combined ratio in the first quarter of 2016 was 99.28%, compared to ALPS 93.30%. Insured law firms were 578, and insured attorneys stood at 1,282. Claims frequency was 2.42% in Virginia compared to 3.45% in the first quarter for ALPS overall.
As of the end of the first quarter of 2016, expenses amounted to $79,864.22. Revenue stood at $72,437.91. The risk management budget supported the following programs:
On–Demand Programing:
Currently, 15 programs exist in the Virginia on-demand library. They range in length from 45min to three hours. New on-demand programs have been added throughout the year. Charges for the on-demand seminars are as follows: programs for one hour $35 for insureds, $65 for non-insureds; two hour programs $45 for insured, $75 for non-insured; and three hour programs $60 for insureds, and $90 for non-insured. Course listing can be viewed at: http://alps.inreachce.com/Search?category=a84aa593-3439-46f7-b433-6dff8acfd1f8
• Quarterly Result: In Q1, we had 76 VA registrants for on-demand programs, with 74 ALPS insureds and 2 non-insured.
• YTD Result: YTD, we had 76 VA registrants for on-demand programs, with 74 ALPS insureds and 2 non-insured.
Webinar Programming
In Q1 (February 17), ALPS performed one webinar, “Understanding File Documentation,” presented by Mark Bassingthwaighte.
• Quarterly Result: In Q1, ALPS had 37 Virginia webinar registrants, with 35 ALPS insureds and 2 non-insured.
• YTD Result: YTD, 37 VA registrants for Webinars, with 35 ALPS insureds and 2 non-insured.
In Q2, ALPS three webinars took place:
- Practice Concerns for Solo Attorneys (May 5th) presented by Mark B.
- The Ethics of Legal Marketing (June 2nd) presented by Sean Carter. This is a partnership webinar with Mesa CLE.
- Fundamentals of Trust Accounting (June 29th) co-presented by Mark B. and Fredericksburg attorney Jeannie Dahnk.
Fall CLE Tour:
Preliminary work on the 2016 Fall Ethics and Professionalism tour is well underway as of the committee’ May 2016 meeting. Here are projected dates and locations:
Week 1
- 9/12 – Newport News PM
- 9/13 – Chesapeake AM
- 9/14 – Charlottesville PM
- 9/15 – Roanoke AM
- 9/16 – Fairfax AM & PM (LMIC meeting will coincide with this event)
Week 2
- 10/3 - Virginia Beach PM
- 10/4 – Richmond AM & PM
- 10/5 – Manassas PM
- 10/6 – Alexandria AM
Spring 2016 Tour
The spring tour occurred on time and with excellent execution. Dates and attendance numbers were as follows:
- 4/13 – Fredericksburg – 69 registrants, 47 in attendance (1/3 ALPS insureds, 2/3 non-insureds)
- 4/14 – Lynchburg – 45 registrants, 45 in attendance (1/3 ALPS insureds, 2/3 non-insureds)
- 4/15 – Abingdon – 46 registrants, 46 in attendance (1/3 ALPS insureds, 2/3 non-insureds)
This was a repeat of the 2015 tour program and included either Jim McCauley or Seth Guggenheim from the VSB Ethics Counsel office, a local attorney and Mark B. The feedback from these events was very positive, both from attendees and faculty.
Local Programs and Events
|
3/18/16 |
2.0 hr |
35 |
Malpractice Missteps and Conflicts |
Wise County Bar |
Cameron Bell |
Local Bars Risk Management Grant Program: The Grants Subcommittee consists of Jeff Geiger, Alanna Williams, Kevin Purnell and Angela Isabell. The chart below outlines grants since the program began in 2014:
|
|
Organization |
Program |
Community |
Amount Requested |
Amount Awarded |
|
Fall 2014 Applicants |
Metropolitan Richmond Women’s Bar Association |
Mentorship Program & Spring Mentorship Event |
Richmond |
$4,000 |
$4,000 |
|
Virginia Beach Bar Association |
Mentorship Program |
Virginia Beach |
$1,000 |
$1,000 |
|
|
Tazewell County Bar Association |
Solo and Small Firm Practitioner Conference |
Abingdon |
$1,000 |
$1,000 |
|
|
South Hampton Bar Association |
CLE for Lawyers who are also caregivers |
Norfolk |
$10,000 |
$3,000 |
|
|
Virginia Bar Association Foundation |
Law Student Transition Program |
Statewide |
$10,000 |
$0 (withdrew application) |
|
|
Spring 2015 Applicants |
Prince William County Bar Association |
New Attorney Roundtable Event |
Manassas |
$2,000 |
$2,000 |
|
Roanoke Bar Association |
Bench Bar Conference |
Roanoke |
$3,000 |
$0? |
|
|
Roanoke Bar Association |
Law Library maintenance |
Roanoke |
$3,000 |
$0 |
|
|
Virginia Creditors Bar Association |
Annual Member CLE |
Statewide |
$2,500 |
$2,500 |
|
|
Rolling 2015 Applications |
Prince William County Bar Association |
Intro to the Courts Program |
Manassas |
$1,300 |
$1,300 |
|
Salem-Roanoke County Bar Association |
Breakfast With Ethics Program |
Salem |
$1,500 |
$1,500 |
|
|
Fall 2015 Applications |
Alexandria Bar Association |
Mentorship Program |
Alexandria |
$1,000 |
$500 |
|
Prince William County Bar |
Law Office Management 101 |
Manassas |
$2,450 |
$2,450 |
|
|
Prince William County Bar |
Tips from the Pros |
Manassas |
$2,330 |
$2,330 |
|
|
Roanoke Bar |
Bench Bar Conference |
Roanoke |
$800 |
$800 |
|
|
Salem-Roanoke Bar |
Indigent CLE program |
Salem |
$2,000 |
$0 |
|
|
Hanover Bar |
High School Program |
Hanover |
$5,000 |
$0 |
|
|
Local Government Attorneys of Virginia |
Law Student Conference Scholarship |
Richmond |
$9,950 |
$3,700 |
|
|
Newport News Bar |
CLE on working with clients with mental health issues |
Newport News |
$2,500 |
$2,500 |
|
|
Newport News Bar |
CLE on succession planning for small firms |
Newport News |
$2,500 |
$2,500 |
|
|
Newport News Bar |
First Day in Practice CLE |
Newport News |
$2,500 |
$2,500 |
|
|
Spring 2016 Applications |
Tazewell County Bar Association |
Solo and Small Firm Practitioner Conference |
Abingdon |
$2,000 |
$2,000 |
|
Asian Pacific American Bar of VA |
Regional Conference |
Statewide |
$10,000 |
Uncertain; pending more info |
|
|
|
|
|
Total |
$82,330 |
$35,580 |
Use of Surplus Funds: LMIC members were kept advised by ALPS of surplus fund projections. The last of the $15,000 of the $17,700 leftover surplus funds from the 2015 RM budget was used for support of the 2016 VSB Techshow. The VSB Techshow took place at the Richmond Convention Center on April 25, 2016, to rave reviews. ALPS’ contribution was used to fund the coffee breaks, the lunch provided and wi-fi access. Ultimately, $15,000 was used from last year’s surplus, and $15,000 in the 2016 budget to fund $30,000 overall of VSB-sponsored events (TechShow and Solo and Small Firm Forums), including $22,000 in payments for direct costs and $8,000 to fund indirect costs to staff events, produce materials and provide giveaways.
Upcoming Meeting Dates
September 16, 2016 The Waterford at Fair Oaks, Fairfax
November 15, 2016 VSB office, Richmond
February 16, 2017 VSB office, Richmond
May 11, 2017 VSB office, Richmond
Updated: Aug 03, 2016