Insurance Marketplace Realities 2025 Spring Update – Errors and Omissions

Rate predictions: Errors and omissions

	Trend	Range
Large law firms		+2% to +8%
Mid-size law firms		-5% to flat
Management consulting firms		-5% to +10%

Key takeaway

While primary markets have realigned their pricing to account for long-term loss trends, rate increases for large law firms have been lower this cycle.

Although London markets continue to seek increases on primary and excess business, Bermuda markets are seeking high single-digit to low double-digit rate increases on excess business and cutting capacity, creating challenges for larger law firms.

Lawyers

• The frequency and severity of LPL claims are at an all-time high. Although there has been some leveling recently, claims are now routinely exceeding $100 million. Underwriters that have historically underpriced these layers, especially those in Bermuda, are now seeking additional
• There’s a current focus on White House executive orders targeting high profile law firms and the potential for claims arising out of those orders, including those that may result if new initiatives are implemented to replace DEI.
• As the use of AI by lawyers increase, there are concerns with oversight and compliance with professional ethical standards. Underwriters are focused on risk management issues, including training/supervision, ensuring the accuracy of AI used, ethical obligations, impact on revenues and long range implications on the overall practice of law.
• While the market is stable, carriers are taking measured rate increases to adjust for inflation and individual firm loss experience. Although excess carriers continue to seek rate adjustments, most primary carriers have reached rate adequacy and are moderating their premium targets based on underwriting criteria.
• Excess markets are still experiencing claims penetration and continue to correct historically low premiums.
• Carriers are continuing to push for higher retentions and using a firm’s revenue as a basis for this increase.

Consulting firms

• Underwriters have continuing concerns over consultants working with clients in the tobacco and opioid industries and potentially crossing the line into proposing or operationally supporting high-risk strategies for regulated or high-risk products.
• High-profile claims against consultants have generated additional levels of underwriting scrutiny for consultants providing these types of services.
• Underwriters are still evaluating insureds that work with sanctioned entities and confirming that they have plans in place to address these situations.
• Competition has resulted in lower premium increases for high-hazard practice areas and for consultants with solid risk management procedures and low risk practices.

To read more, download the full report below.

Disclaimer

WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Contacts

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Geoffrey Allen

Head of Professional Services Practice

email Email phone +1 818 915 4311

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Jason D. Krauss

FINEX NA Cyber Thought & Product Coverage Leader

email Email phone +1 212 915 8374

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