Many law firms assume that their premiums will stay relatively consistent once they secure professional liability insurance. Attorneys are often caught off guard when they receive their second-year renewal notice, only to see a 20-35% premium increase—even without any claims or significant changes to their firm.
This increase is due to step rate, a structured pricing approach insurers use to adjust premiums as a policyholder gains more coverage history. Understanding how it works and what it means for long-term insurance costs is crucial for law firms aiming to budget effectively and avoid financial surprises.
Download the eBook below to discover:
- What is step rate, and why do premiums increase?
- How step rate has changed over the years
- How firms can plan for pricing increases
