If you're not quite sure what legal insurance is, you're not alone. At ARAG, we deal with misconceptions attorneys and others in the legal industry have about what we do all the time. We want to bust the five most common myths we hear about legal insurance so that you can see how it might be able to benefit you and your firm.
Myth 1: It's malpractice insurance for attorneys.
Legal insurance helps improve access and affordability of attorneys for people dealing with legal issues just like health insurance helps improve access and affordability of doctors for those dealing with medical issues. Attorneys who join a legal insurance network are connected with plan members to help with both proactive and reactive legal needs, similar to doctors on a health care PPO network. Legal insurance is for anyone who is going to be dealing with legal issues in their life – and attorneys know that's basically everyone at one point or another.
Myth 2: Legal insurance is basically the same as prepaid legal.
The phrase "prepaid legal" calls to mind limits and restrictions – only a few hours' worth of attorney fees are covered, or the people using the service only need one contract done or want to talk to an attorney once over the phone. Legal insurance provides comprehensive coverage for more than one hundred legal issues and additional services at a discounted rate. Plan members use attorneys' services regularly (not just once) and attorneys are compensated by ARAG for covered services they provide. Plus, because insurance is a regulated industry, attorneys and clients can rely on the highest standards of service, ethics and accountability.
Myth 3: There are fees to join.
No, there is no fee for an attorney to become an ARAG Network Attorney. We want to help you grow your practice and we are passionate advocates for the importance of attorneys being front and center as the legal industry decides on the best way to serve the millions who need their help. Attorneys who join ARAG's network do agree to a set fee structure, but attorneys on the network see the increased referrals and payment they receive being worth the discounted rate. And although an attorney can terminate his or her relationship with ARAG at any time, we have a nearly 95% retention rate for attorneys on our network.
Myth 4: Legal insurance plan members are bad clients.
Some people who need attorneys have a "one-and-done mentality," but people with legal insurance are more likely to establish an ongoing relationship with attorneys and use them for future services. In fact, more than 90% of people with legal insurance are more likely to consult with their ARAG attorney as situations arise (as compared to if they didn't have legal insurance). We've also heard from our attorneys that clients with legal insurance show up more prepared for the first attorney meeting and have a better grasp of the legal process and how attorneys can help.
Myth 5: Being part of a legal insurance network won't drive revenue.
Attorneys have told us that they do see an impact on their business after joining ARAG. For example, ARAG Attorney John Wachsmann of Denver, Colorado, states, "It's been tremendous for our bottom line. It's clients we would not have had otherwise and if we do a good job for them, we've had referrals from those clients for other non-plan clients." Client feedback supports this: 88 percent of ARAG plan members say they are likely to refer ARAG network attorneys to their family and friends.2
Jena Maxwell, an ARAG Attorney from Seattle, Washington, adds, "The legal world is changing and attorneys are fighting for business, so having that additional way to get clients and get your foot in the door is huge."
After reading these mythbusters, are you interested in learning more about how legal insurance can help you and your practice gain more clients and increase your revenue?
Visit ARAGlegal.com/attorneys today to learn more about the benefits of joining the network.
