SDCBA members are finding very competitive rates through the Bar's new LPL policy and its broker, Ahern Insurance. Since legal malpractice insurance was introduced as a member benefit late last year, firms of all sizes have taken advantage of the Bar's new policy through Ahern Insurance Brokerage and liability carrier XL Capital.

"For the first three months, we have written 60 firms," said Brian Ahern, president of AIB, which insures more lawyers than any other agency in San Diego and provides the LPL program exclusively for Bar members. "That tells me it's not only a quality product, but it is priced competitively."

The Bar-endorsed professional liability program through Ahern makes it possible for individual members of the Bar to purchase a high-quality professional liability plan at group rates. The policy provides competitive rates on a one-year coverage period for anywhere from 1 to 50 lawyers.

The program is open to all sized firms and all areas of practice.

Eighty to 90 percent of the applications Ahern receives result in a client finding competitive rates and enrolling in the program, he said. "People are purchasing the product," he said. "We are finding that we can be competitive on small-, mid- and large-sized law firms.

"It was going to be significantly cheaper than our prior carrieras well as other carriers, and the coverage was the same," said David Perkins of Perkins & Miltner LLP, specializing in construction litigation and business litigation. "The deductible is probably equal between the different policies, but the premium was significantly lower. It looks like a great policy and we are happy with it."

It appears the program can be particularly competitive for smaller firms, many of which are saving considerable amounts of money as a result.

Naumann & Levine, LLP is a small construction defect firm in the UTC area, with 17 employees including six attorneys.

"We found the San Diego County Bar program through Ahern Insurance Brokerage and XL Capital to be extremely competitive compared to other options in the marketplace," said Bill Naumann, a partner at Naumann & Levine. "Combining the favorable premium, strong policy form with an "A+" rated Admitted carrier, it made for an easy decision to go with the program."

David Z. Bark of Pettersen & Bark said his firm "shopped around" before purchasing a policy that managed to cut his premiums by about 50 percent.

Pettersen & Bark, a small, downtown civil litigation firm, solicits quotes on professional liability insurance every year, Bark added. " This is the first year we have been able to see a significant drop," he said.

"I shopped it around with three different brokers and nobody could beat this price. No one was even close," he said. "Ahern was 25 percent cheaper than the closest carrier."

The San Diego County Bar Association's Board of Directors approved the new LPL program last fall at the recommendation of the Bar's Legal Malpractice Committee. Available through locally owned and operated Ahern Insurance Brokerage, the program became available to SDCBA members in December of last year.

The policy includes a $500,000 to $5 million limit per claim or annual policy period, with deductibles as low as $5,000; input on the selection of legal defense counsel (in the event of a malpractice claim); a sublimit for disciplinary actions; and risk management services. In addition, there is a free retirement tail associated with the policy. The professional liability carrier, XL Capital, is one of the financially strongest carriers in California with $40 billion in assets and a rating of A+(Superior) from A.M. Best, the nation's leading insurance rating service, Ahern said.

The Bar selected Ahern Insurance Brokerage after a thorough process, which included a formal Request For Proposal by the San Diego County Bar Association on behalf of its members. More than 12 insurance brokers and companies responded to the RFP.

In addition, attorneys with insurance expertise did due diligence on this policy as both the Bar's Member Benefits Subcommittee and its Legal Malpractice Committee were involved in the sponsorship decision. "Bar members really appreciated that they put together this program," Ahern said.

Ahern Insurance Brokerage has provided commercial insurance to the San Diego legal community for more than 11 years. Ahern Insurance Brokerage provides access to more than 20 different companies with proprietary programs for small, medium and large firms, and currently represents approximately 1,400 law firms including Duckor Spradling & Metzer; Thorsnes Bartolotta & McGuire; Wingert Grebing Brubaker & Ryan; Neil Dymott Perkins Brown & Frank; and Sullivan Wertz McDade & Wallace.

The program comes at a particularly important time, as many insurers are leaving California. This, in turn, impacts premiums, particularly in a hard insurance market. Ahern Insurance Brokerage also has program endorsement experience with the Bar Association of San Francisco and Orange County Bar Association.

In addition to the Bar-sponsored liability program, San Diego County Bar Association membership benefits include along-term care program, disability, life and medical insurance through Barney & Barney LLP; a Preferred Member Discount Program with Staples Office Supply and many other professional services. By leveraging its membership numbers, the San Diego County Bar Association can provide these programs so that firms of all sizes have access to cost-effective services beneficial to those in the practice of law.