Recent Newsletters

Commercial Insurance
Market Tightens

While AIM continues to remain a source of stable pricing and availability for its insureds, large numbers of Alabama attorneys and law firms who relied on commercial malpractice insurance are facing rate increases or losing their coverage altogether. Recurring instability in the availability of commercial legal malpractice insurance led to the formation of AIM which commenced operation in 1989. Since it was founded, AIM has provided insurance continuously to Alabama attorneys. Premium for virtually all mature rated AIM insureds has remained stable to declining over the years.

Problems currently faced by Alabama attorneys insured by commercial insurers include one carrier non-renewing all its legal malpractice insurance business. Another old carrier, which recently suffered severe medical malpractice losses, appears to be selectively non-renewing policyholders it feels are higher risks. This suggests that its commitment to the line of malpractice insurance is waning. Other commercial insurers are applying 20-40% rate increases to renewing insureds.

In the 14 years since AIM=s inception, numerous other commercial carriers have dabbled in providing Alabama attorneys malpractice insurance. Typically these smaller, generally not well-known carriers, write insurance for a year or two and then non-renew their entire books of business forcing insureds to scramble to find coverage elsewhere.

AIM continuously serves Alabama attorneys and has developed a fair premium structure based primarily on our Alabama claims experience.