Flat – Rate, Quick – Turnaround Insurance Coverage Opinions: An Idea Whose Time Has Come

efficiency

Once upon a time an insurance executive who asked me to prepare a coverage opinion and a draft declaratory judgment complaint sheepishly asked me, “Can I get this in two to three weeks?”  I don’t get this question anymore.

Why?  Because in most cases the quickest line between an insurance executive and the coverage opinion he or she needs is a direct request to oftentimes-overworked in-house lawyers.  Seen as the lesser of two evils, the in- house route is perceived as slightly less costly in terms of both time and money.

A frequently expressed theme at www.badfaithadvisor.com  is that the market for outside legal services is changing in ways not even considered a few short years ago.  Insurers, to the extent there is budget or allowance for outside legal services at all, want the outputs faster and cheaper than ever before.  Legal problems are not only legal problems any longer — they are business problems.  And part of the business problem is obtaining  what is purchased from law firms quicker, and at lower cost.

Changing products and services must meet the changing conditions, or outside law firms will lose their usefulness.  Enter into the marketplace the fixed-cost, fixed delivery date insurance coverage opinion.   It is proving to be extremely popular with clients,  who find it to be an even  cheaper and better alternative than to having the work done in-house.

Innovation is not necessarily invention:  it is simply aligning supply with changing demand, and the fixed-fee coverage opinion does this with its pricing model, and with a guaranteed delivery date of usually as little as three to five business days.  Depending on the complexity and the coverage issue, and the volume of materials to be reviewed,  a client is proposed a single price for a complete coverage opinion and a guaranteed delivery date.  Priority 24 and 48 hour options are also available, also at a quoted, fixed fee.

Under the arrangement, the client is given dual cost control:  control over the financial cost of obtaining and opinion, and perhaps as importantly, control over the cost of time it takes to obtain it.  The life force of Perceived Value is breathed back into a transaction which, at a routine hourly rate arrangement, was and is flagging in the marketplace.

If you don’t have access to outside law firms who can deliver insurance coverage, case evaluation,  or other legal opinions to you in a matter of days for a quoted price, you will improve your efficiencies, and solve both business and legal problems, as soon as you do.

For more information on taking advantage of fixed fee, guaranteed-on-time coverage, case analysis, and legal opinions, contact me at chaddick@dmclaw.com or 717-731-4800.

 

 

 

 

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Author: CJ Haddick

C.J. Haddick is a Director with the law firm of Dickie, McCamey, & Chilcote, PC, based in Pittsburgh, Pa. He has advised and represented insurers in insurance coverage and bad faith litigation for more than a quarter of a century, and written and spoken throughout the United States on insurance coverage and bad faith prevention and litigation. He is Managing Director of the firm's Harrisburg, Pa. office. Reach him at chaddick@dmclaw.com or 717-731-4800.

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