What is an appropriate deductible for my firm?
Deductibles or retentions can range from as little as $0 or $1,000 for a solo practitioner, to as much as $250,000 for a large firm. Some very large firms can carry a retention of as much as $1 Million. This allows the firm greater flexibility in not involving their insurers in relatively small matters, but still protects the firm and its members from catastrophic claims. Generally, small to midsize firms choose deductibles between $2,500 and $25,000. As stated previously, policies vary in terms of whether claims costs are charged against the deductible. Some firms prefer the simplicity of one deductible amount, applicable to both claims and damages. Additionally, some options available include a higher deductible for damages, but a lower deductible for claims expenses, or what is referred to as a “50/50” retention, with only 50% of the deductible applying to claims expenses. Another important option to understand is whether your claims expenses are included within the limits of liabil
