This question comes up quite frequently when talking with our insureds. They call to discuss changes at the firm, advising that a lawyer has left or will be leaving soon. After asking what they need to do to remove the lawyer, the next question is, “will we get any of the premium back?”
The answer to this question is no, deletions of lawyers during the policy period do not result in a return of premium.
This is because the firm and the former lawyer remain covered by the policy for the professional services the former lawyer performed at the firm. This is commonly referred to as “former member coverage.” You can find this in section I. (8) of your AIM policy.
Similarly, if the firm were to add a lawyer during the policy period, there would not be a premium adjustment mid-term (unless the addition of lawyers creates a material change in the risk, e.g. a 2-lawyer firm goes to a 10-lawyer firm). We look at who is with the firm at the time of renewal and make the premium adjustment for lawyer additions or deletions at that time.
Changes such as these should be reported to AIM within 30 days of the addition or deletion of the lawyer but no later than the anniversary date of your firm’s policy.
You can notify AIM of these changes by email, but did you know that you can request these changes in our new myAIM portal? In the portal, you can request to add or delete lawyers from the policy, change the firm name on the policy, change your address, and request changes to your limit and/or deductible. You can also report claims and potential claims in the portal. If you need assistance setting up your firm’s account in the portal or with navigating the portal, please contact our office, and we will walk you through it.
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