Prior
to joining AIB,
Ellen Ahern worked
for Select Personnel
Services, a staffing
company, for three
years. Before
that, she spent
nine years with
department store
Nordstroms. Brian
Ahern asked Ellen
to come work with
him on various
occasions. Finally
she told him,
“If you’re
serious, let’s
go to lunch and
discuss it.”
Later, she decided,
“I’d
rather help him
drive a bigger,
better car than
someone else.”
Large
Clientele
Ellen
Ahern’s role
at AIB was eventually
expanded beyond
sales to marketing.
She searches for
new clients, manages
the company’s
database, helped
design its Web site
and works on the
company’s branding;
she designed the
blue-and-silver
company logo.Brian
Ahern’s focus
is his own 150 clients
and managing the
company’s brokers
and sales staff,
in addition to overseeing
AIB’s day-to-day
operations. He also
works closely with
the insurance industry.
“We
look at the insurance
companies as our
clients too,”
he said.
The
company, which
has access to
more than 20 insurance
carriers, grew
from $2.5 million
to $3 million
in premiums in
its first year
to $12 million
in 2001. That
year, AIB posted
revenue of $1.8
million and expects
to earn $2.4 million
in 2003. The brokerage
has a small office
in Arizona and
recently wrote
its first policy
in Nevada. It
now has about
1,000 law clients,
about 250 of which
are in San Diego
County. San Diego
clients include
Brown Martin Haller
& McClain;
Keeney, Waite
& Stevens;
Neil, Dymott,
Perkins, Brown
& Frank; Sullivan,
Hill, Lewin, Rez
& Engel APLC;
Sullivan Wertz
McDade & Wallace;
Thorsnes, Bartolotta
& McGuire;
and Wingert Grebing
Brubaker &
Ryan LLP. AIB
specializes in
professional liability,
or malpractice,
insurance for
the legal industry.
Other products
tailored for law
firms include
coverage for general
liability, property,
workers’
compensation,
employment practices
liability (wrongful
termination, employee
discrimination
and sexual harassment),
and bonds.
Part
Of The Family
Michael
Thorsnes, a partner
in Thorsnes Bartolotta
& McGuire, said
the firm has been
working with the
Aherns for as long
as he can remember.
Thorsnes said Ellen
and Brian Ahern
are representative
of a great family.
He said his firm
continues using
AIB because of the
company’s excellent
service.
“We
may pay a little
premium for it,”
he said, but the
firm feels the service
is worth the price.
“We
handle big cases
and our exposure
is considerable.”
Thorsnes
Bartolotta is made
up of civil trial
lawyers who specialize
in larger cases.
The firm is representing
Pacific Bell in
a regulatory audit,
is working on a
case against the
tobacco industry,
and represented
real estate developer
Roque de la Fuente
in his case against
the city of San
Diego, in which
he won a $65.3 million
award last year.
The Lawyers Club
of San Diego, San
Francisco Bar Association,
and the State Bar
of Arizona endorse
AIB. The brokerage
is a membership
benefit of the Orange
County Bar Association.
Bar associations
that endorse AIB
select the insurance
broker, sometimes
along with a specific
insurance company.
Ellen Ahern said
members of bar associations
endorsing AIB have
access to a special
risk management
Web site.
“They
get a little more
risk management
support than they
(normally) would,”
she said. The
company is in
the same boat
as many other
insurance brokers
and carriers;
the insurance
market is hardening.
Staying
Competitive
AIB
has to figure out
how to position
its clients in an
atmosphere where
insurance premiums
are increasing anywhere
from 35 to 200 percent
this year, Brian
Ahern said.
“Our
clients rely on
us to be their eyes
and ears in the
market,” he
said, finding them
the best coverage
at the lowest price.
“That’s
why we retain just
about 99 percent
of our clients.”
In
order to help
clients through
a period of premium
increases, he
said the company
has to communicate
effectively with
its clients, explaining
the market and
why rates are
increasing. Fish
& Richardson
P.C. of San Diego,
which practices
in the areas of
intellectual property,
litigation and
corporate and
securities law,
is expecting a
20 percent or
more increase
in its insurance
premiums this
year. The firm
is not one of
Ahern’s clients.
John Freeman,
a principal of
Fish & Richardson
and chairman of
the firm’s
risk committee,
said, “Even
though (the firm)
has a long and
positive history
with its carrier,
the carrier has
notified Fish
& Richardson
that intellectual
property coverage
in general will
be subjected to
particularly large
increases this
year.” Brian
Ahern said AIB
has to keep insurance
carriers on their
toes, negotiating
other features
into contracts
as rates increase,
such as fewer
limits on liabilities
or higher deductibles.
Fortunately, premiums
have not gotten
as high as they
were in the late
1980s.
“The
problem is buyers
got used to a
soft market. Now
they’re having
to adjust,”
Brian Ahern said.
He
predicts premiums
will continue to
increase, but will
soften in the next
two or three years.
Neil,
of Neil Dymott,
said he has been
pleasantly surprised
that Ahern has
been able to keep
his firm’s
professional liability
insurance costs
at a pretty steady
rate. “In
the wake of Sept.
11, we’re
expecting a boost,”
he said. “(AIB
is) very reliable
and responsible
and attentive
to our needs.
They’ve been
very effective
at realizing what
our needs are
and matching our
needs.” Neil
Dymott focuses
on civil lawsuits,
with clients ranging
from the Metropolitan
Transit Development
Board to large
corporations involved
in product liability
cases, usually
as lawyers for
the defense. The
firm also does
employment law
work and represents
doctors, hospitals
and other clients
in professional
liability cases.
Staying
Focused
Brian
Ahern said the company
has thought about
branching out into
other industries
or products from
time to time.
“But,
you get good at
something and we
still have a lot
of opportunity,”
he said.
Workers’
compensation and
general liability
were additions
to AIB’s
original package
of products. Going
beyond malpractice
coverage was due
to clients’
requests. “It
came down to clients
just kept asking
us, ‘Can
you do other lines
of insurance?’”
Brian Ahern said.
He noted the company’s
business plan
has to be flexible.
“Our simple
approach to growth
has been if a
good person comes
along, then hire
them,” he
said. While some
companies push
more and more
work on their
employees as the
business grows,
AIB tries to hire
new employees
before current
employees become
overburdened,
Ellen Ahern said.
Also, the company’s
philosophy is
that family comes
first and business
is second. “It
bodes well for
keeping long-term
clients and employees,”
she said. AIB
has had only two
employees leave
in its five years.
The company provides
opportunities
for its employees
to move up and
meet their own
career goals.
Giving people
more opportunities
helps them support
their families
better, Brian
Ahern said. Looking
to the future,
he said his company
will continue
to grow, so long
as it’s in
the best interest
of its clients.
“Right
now, it appears
in our clients’
best interests
to keep growing,”
he said.
Brian
Ahern’s assistant
is being promoted,
so he’ll have
to hire a new assistant
soon. Also, a new
office manager will
soon begin working
for the company,
bringing the employee
total up to 16.
By the end of the
year, AIB expects
to have 20 employees.
Ahern Insurance
Brokerage
Founded:
1997
Executives: Brian
Ahern, president,
and Ellen Ahern,
executive vice president
Revenues: $1.8 million
in 2001; $2.4 projected
for 2003
Employees: 14
Location: 9988 Hibert
St., Suite 302,
San Diego
Business: Insurance
brokerage catering
to legal professionals
