History

Professional liability insurance is intended to protect lawyers against claims that might arise from acts, errors, or omissions in providing professional services to clients that result in the lawyer being held liable for damages.

In the past, there had been dramatic increases in premiums for professional liability insurance for lawyers in Florida. The Florida Bar studied the situation for several years and was concerned with the problems facing Florida lawyers. It was believed to be in the public interest for Florida lawyers to carry professional liability insurance and in 1987, to that end, The Florida Bar created Florida Lawyers Mutual Insurance Company.

The company's primary objective is to provide to qualified Florida lawyers a financially sound, stable and long-term alternative to that offered in the commercial professional liability market. The company is owned by its insureds-Florida lawyers. And by limiting its business to the writing of professional liability insurance for Florida lawyers, only claims against attorneys in Florida will affect the company's loss experience.

The mutual form of organization was chosen for the company because the policyholders elect the Board of Directors. It should be emphasized that the underwriting standards for the company are consistent with sound insurance practices; that rates charged by the company are established to ensure the company's long-term viability, and that claims are administered in accordance with accepted insurance claims standards.

Since becoming operational in 1989, the company has increased the number of insureds from 769 to over 4200 and the number of firms from 337 to over 2400. Each year the company has reported a net profit and added to the reserves.

In 1997 the company joined together with other Bar-related insurance companies to form Lawyers Reinsurance Company, a Vermont captive reinsurance company. The formation of this company is the logical extension of the vision all the Bar-related companies had when they were formed, i.e., to take their future into their own hands. Also in 1997, the company was able to suspend the requirement that lawyers purchase surplus certificates as a condition of insurance.

To receive an application packet, please call Florida Lawyers Mutual Insurance Company at 888-412-9333.