Insurance

Here are 10 reasons why lawyers should consider purchasing malpractice insurance from Lawyers Mutual NC, a mutual-owned company that is reliable, cost-effective, and ethically aligned.

1. Ownership and Control: Lawyers who purchase insurance from a mutual company are policyholders, not stockholders or shareholders, which means they own the company and can vote on certain decisions that affect the company.
2. Focus on Policyholders' Interests: Mutual-owned companies are owned by their policyholders, not external shareholders. This can align the company’s priorities with the interests of its policyholders, making it more focused on serving lawyers’ needs.
3. Potential for Dividends: Mutual insurance companies may issue dividends to policyholders if the company is profitable. This could result in a return on premiums paid, offering financial benefits beyond the basic coverage. We have a strong record of annually returning capital to policyholders via dividends when financially prudent.
4. Stability and Long-Term Commitment: Mutual insurance companies are generally focused on long-term stability, since they are designed to serve the interests of policyholders, not to generate short-term profits for shareholders. This can translate to a more reliable and consistent approach to coverage. For nearly 50 years, LM has been providing financial security to North Carolina lawyers.
5. Reasonably Priced Insurance: Mutual companies may offer competitive premiums due to their structure, which helps avoid the profit-driven costs typically associated with stock insurance companies.
6. Personalized Service: Many mutual-owned insurance companies focus on providing more personalized service. This is beneficial for lawyers who might need tailored coverage or a responsive risk management experience.
7. Enhanced Risk Management: Mutual insurers often provide access to risk management resources and loss prevention services that are geared specifically towards the legal profession. These can help lawyers avoid claims and reduce malpractice risk. At LM, we offer claims repair as part of our loss prevention approach.
8. Reputation and Trust: Mutual companies often establish strong reputations within their professional communities. Lawyers can take comfort in supporting an organization that not only prioritizes their interests but is also deeply invested in the legal field. The LM team is comprised of professionals who hold leadership roles on various boards and committees, including the NC State Bar, the NC Bar Association, and numerous other organizations serving North Carolina. Additionally, LM team members travel statewide to provide valuable, timely risk management resources.
9. Claims Handling Consistency: Mutual insurance companies often have a more consistent and policyholder-friendly approach to handling claims. Lawyers may prefer dealing with an insurer that understands their specific professional needs and challenges. At LM, we have 7 claims attorneys on staff who worked in private practice prior to joining LM.
10. Alignment with Ethical Standards: Many mutual-owned malpractice insurance companies operate under strict ethical guidelines, ensuring that their business practices align with the professional ethics that lawyers must uphold. We live and breathe (even  teach!) legal ethics.

To apply for malpractice insurance, click here.