A law firm may find that renewing its legal malpractice policy with the same insurer year after year is advantageous for a number of reasons.

For example, the law firm and insurer may build a strong working relationship, and there is a lesser risk of “gaps” in coverage that can form when the law firm changes insurers.

However, at the same time, law firms that are too complacent with their current coverage and insurance policy may lose out on better, cheaper coverage that may be available as the insurance market changes. While each law firm has unique considerations in determining whether to change insurers, there are certain issues that will likely carry the most weight when assessing the pros and cons of switching. Below are four key factors.

Cost considerations

The market for legal malpractice insurance is extremely competitive and can be volatile. In particular, when new insurers begin writing legal malpractice policies (or others phase out or consolidate), the change in competition may cause downward pressure on premiums. Thus, attorneys and law firms with a good claims history may have significant leverage when it comes to setting a premium. Insurers may be eager to underwrite a firm that has strong loss prevention techniques. (Some law firms even hire counsel to advise them on claim-prevention techniques that may be attractive to an insurer in setting premiums.)