What happens when a law firm's website doesn't match the practice areas listed on its application? It's a dilemma brokers and underwriters know all too well, and admittedly, it's a part of the job we find challenging at times. To be fair, both sides have reason to be frustrated. If a firm's website shows that it handles class action cases and that doesn't appear on the application, it would be negligent for an underwriter not to flag it. On the other hand, what are our clients supposed to do? A law firm's website is often its best marketing tool, and it's very common for firms to advertise types of cases they handle rarely or not at all. Does that mean they should be penalized for higher risk practice areas even if they've never actually taken on that work?
Another area where firms can run into trouble is an attorney who is listed on the website but not on the application. There are plenty of reasons this might happen. Perhaps the attorney is retired or of counsel, and there's no real reason to take them off the website. A firm may also look stronger with more attorneys listed, so even an of counsel attorney who only consults on matters occasionally can be worth including. Unfortunately, if an underwriter sees attorneys on the website who aren't on the application, they're going to have to ask why.
It would be easy to jump to the conclusion that every firm should keep its website constantly updated and avoid advertising practice areas that are higher risk and likely to be flagged by underwriters. That's not the position we take as a broker. We don't believe a firm should be penalized because its website isn't up to date at any given moment. We land somewhere in the middle. A firm shouldn't have to conform its website to what an underwriter might want to see. However, there is real value in making sure the website doesn't contain anything that will be an obvious red flag to an underwriter.
In our view, the best approach is to review every client's website carefully before anything is submitted to an underwriter. A broker is not an underwriter, but any broker who has been around the block should be able to think like one and work with the firm to address potential issues on the website before an underwriter ever sees it.
Finding an issue on the website doesn't mean you need to change it before an underwriter sees anything. It just means we may need to get some information from you and give the underwriter a heads up. Often, that's the biggest part of all of this. We can't overstate the difference between an underwriter thinking they've found an issue and a broker raising it with them up front. When an underwriter thinks they've found something, it opens the door to more and more questions and can lead to a declination or a higher premium.
It probably goes without saying, but it's very important that the application is accurate. If attorneys who are part of the firm aren't on the application, that's an issue. If the firm practices in a high risk area of practice that isn't listed on the application, that's also a problem. For example, if a claim comes in involving an attorney who wasn't listed on the application, in an area of practice that also wasn't disclosed, there's a high likelihood that claim won't be covered.
To be clear, if a firm wants to list an of counsel attorney on its website but not on the application, it's probably not an issue as long as that attorney's hours aren't significant. If a firm wants to market an area of practice it hasn't actually handled yet, that's probably fine too. It may just need to be explained to the underwriter before they see it and feel they've discovered a problem.
Ultimately, a law firm's website and its application are often going to tell slightly different stories, and that's okay. What matters is that the application is accurate and that any differences are explained to the underwriter before they find them on their own. That's a big part of what a good broker should be doing on every submission. If you're getting ready to renew, or you're not sure how your website might read to an underwriter, we're happy to take a look before anything goes out.