2027 Primary Program Changes
- The base premium increase responds to sustained growth in claims frequency and costs, the introduction of first-party cyber incident coverage, and the need to preserve the long-term financial sustainability of the Primary Program.
- There are discounts available to many insureds depending on area of law, year of call, and number of hours worked and gross billings.
- This is the first premium increase in 5 years (last increase was in 2022).
- The insurance task force requires the insurance program to: “Offer premiums that generally reflect risk (i.e., those with greater risk pay higher premiums).” Levies are one way that premiums can reflect the higher costs of claims by area of law without affecting all lawyers.
- The increase reflects long-term claims experience in real estate and civil litigation which continue to generate a disproportionate share of claims frequency and claims costs.
- The current levy amounts were not keeping up with the increased costs associated with Civil litigation and Real Estate claims.
- To simplify the administration of the insurance program we are eliminating deductible options that are selected by only a small percentage of insureds.
- The revised structure maintains meaningful choice for insureds while making deductibles easier to understand.
- Deductible options of $2,500, $5,000 and $10,000 applicable to indemnity payments only have been removed.
