Issue Number 1, 2003

Every now and then we go back to the Claims Department and ask, "what’s been causing you guys trouble lately?" When we asked the other day, they said it is the SOS (same old "stuff.") For those of you who may not know what the same old stuff is, here is what the Claims Department said.

Over the previous five years, Texas Lawyers Insurance Exchange (TLIE) has paid approximately $50,000,000 in gross legal malpractice losses, and over $12,000,000 in claim expenses. The claims paid by TLIE are just the tip of the iceberg. TLIE is one of many insurers who provide professional liability insurance to Texas attorneys. According to a study conducted in 1989 by the State Bar, over 50% of solo practitioners in Texas were not insured, and we believe the percentage is larger today. TLIE does not insure a number of the largest firms in the state that have well publicized malpractice claims. Deductibles paid by insureds and loss of productive time spent addressing claims also affect lawyers. The economic effect of malpractice claims is thus very significant.