While even the best run firms may suffer a professional liability claim, firms that proactively manage their risk are going to have fewer claims and firms that have fewer claims are going to be more profitable.   Risk management is a complex topic, but there are some basic strategies that are used by well-run firms to lower the frequency and severity of professional liability claims.

The insurance industry is experienc ing the tail end of a prolonged soft market.  Rates for most businesses have been coming down since 2002/2003, due mainly to excess capacity in the industry.  Insurance has always been supply driven, and as surplus goes up, rates come down.