Lawyers Make Great Insurers

An insurance company founded by a state bar? Believe it. As a result of a crisis in the lawyers’ professional liability insurance market in the mid 1980s, the Missouri Bar established The Bar Plan in November 1985 to fill a void created when the state’s designated endorsed carrier left the marketplace.

In addition to writing LPL insurance in Missouri, Kansas, Indiana, and New Mexico, The Bar Plan—rated “A-” Excellent by A.M. Best and headquartered in St. Louis, Missouri – offers court bonds in 47 states and Washington, D.C., and workers’ compensation, group term life, commercial auto, and law office coverage to Missouri law firms.

“As the endorsed LPL carrier of the Missouri Bar for more than 20 years, The Bar Plan is committed to serving the insurance needs of Missouri attorneys and attorneys in all the states we serve,” said Patrick O’Leary, vice president and general counsel. “This endorsement brings with it both a great sense of obligation and a great sense of pride in knowing that we are an important player in the legal community and the people it serves.”

Like many other insurance companies servicing niche markets, volatility and challenges are the norm. In 2005 and 2006, The Bar Plan saw increased claims and severity greater than anything the company had ever experienced. The negative result challenged the company to review and analyze all of its policies and procedures to respond in an effective and appropriate way. “Late in 2006 and 2007, we began to see the benefits of the changes that were made,” said O’Leary. “But we had to weather a storm that other, more diversified carriers might not have been faced with.

“Our loss-control measures begin with our underwriting where we thoroughly review the risks presented by the firm by looking at areas of practice of each attorney and loss histories,” continued O’Leary. “We also provide extensive risk management services to our insureds through continuing legal education seminars, a confidential risk management hotline, and free risk management audits.”

Staffing its departments with lawyers is also a key to The Bar Plan’s relationship with its insureds. Understanding malpractice claims and possessing the ability to work with and speak the language of outside counsel allows The Bar Plan to aggressively manage and resolved claims.

“Our LPL underwriters have more than 40 years of combined experience, and our court bond underwriters are managed by an attorney and have combined experience of more than 20 years,” O’Leary explained.

The Bar Plan’s close relationship with bar associations and the lawyers it serves and its clear sense of partnership and common purpose with them is very rewarding, according to O’Leary. “The Bar Plan was formed by lawyers for lawyers, and our mission has not changed in the more than 20 years since our company was founded,” concluded O’Leary.

Posted: Tuesday, October 16, 2007 12:00:00 AM. Modified: Tuesday, October 16, 2007 3:54:20 PM.

(317) 875-5250 - Indianapolis | (202) 628-1558 - Washington, D.C.

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