Workers’ compensation insurance is one of those areas of running a business that we all know we should pay attention to, but which often suffers from neglect.  Usually that’s because business owners (including solo attorneys) know little about what workers’ comp is or where to obtain it.

Workers’ compensation insurance provides wage replacement and medical and rehabilitation benefits to employees injured during the course and scope of their employment.  Any person or firm who employs another person is required to pay for workers comp for the employee unless the employment relationship is exempt under Minn. Stat. § 176.041, subd. 1.  This means that solo attorneys will usually be required to obtain workers’ comp insurance for their legal assistants, secretaries, clerks, and other staff.

So while some solo attorneys may need to obtain workers’ compensation, can “true” solos buy the insurance?  While solo attorneys are on the job during most of their waking hours, many believe that they are precluded from purchasing workers’ compensation on themselves.  The opposite is true.  Minn. Stat. § 176.041, subd. 1a allows an owner of a business to elect to be covered by workers’ compensation insurance.

If you do not purchase long-term disability insurance, workers’ compensation may be even more important.  Solosmall attorneys seem to work 24/7/365.  There is a good chance that you could become disabled from an injury that arose out of the course and scope of your “employment” as an attorney.  It is, therefore, a low cost option to cover occupational injuries.

Furthermore, workers’ compensation insurance may be a good buy for you if you employ those covered by workers’ comp.  This is because wokers’ comp policies have a minimum premium requirement and the premiums often paid for paralegals, clerks, and secretaries may not reach the minimum premium.  There is no reason to overpay for clerical coverage when the difference between actual premium and minimum premium could be applied toward the cost to provide coverage for yourself.

Workers’ compensation insurance can be obtained through independent insurance agents, direct writing insurance companies and, as a last resort, the Minnesota’s Assigned Risk Plan.  The compensation class code for attorneys in Minnesota is 8820.  The rate for this class code is in the range of .30-.35% of payroll, depending on the insurer underwriting the coverage.  In 2012, the minimum and maximum payrolls subject to premium rating for sole proprietors, partners and officers is $23,296 and $93,184, respectively.  Assuming a class code rate of .33%, a solo attorney’s annual premium would not exceed $308 plus various debits and credits that apply in the standard premium formula and a $180 charge for an expense constant.

Visit Minnesota Workers’ Compensation Association at www.mwcia.org to calculate what your workers’ compensation premium is under the Assigned Risk Plan.  Provide the application and premium from the premium calculator function on the website to your insurance agent.  Ask the agent to place coverage for you using the information that you have developed from the MWCIA website.  The agent will submit your risk to the insurance companies that he or she represents.  If none of these insurers will offer to write coverage, then the agent will submit your application to the Assigned Risk Plan as the market of last resort.

© Debra McLain for Practice Blawg, 2012. | Permalink | No comments yet | Add to del.icio.us
Post tags: solo practice

Feed enhanced by Better Feed from Ozh

What’s worse than graduating thousands of dollars in debt? Answer: Not having the skills to hit the ground running and start making money.

As we discussed in a previous post, law school graduates are struggling with education debt and are graduating into a poor job market. To make matters worse,  recent articles in The Atlantic  and New York Times point out that law schools teach students to graduate, but not to practice law. Although some schools have beefed up their clinical skills programs, law school education remains largely academic. Graduates are not prepared to practice nor to set up their own practice.

What’s an aspiring solo to do? Try Boot Camp - it’ll help you to whip your new practice into shape, but without the pushups. On Tuesday, December 6, the Solo and Small Firm Section of the MSBA is hosting its second annual “Going Solo and Small Boot Camp,” a full day of practical tips and resources for starting or improving your own practice. The Times article referenced a study of top-tier law school faculty hiring practices; nearly half never practiced law. Boot Camp is different. The diverse group of presenters has years of combined expertise in opening a law practice and will discuss many important, can’t miss topics:

• start-up questions such as choice of entity, where to office, practice areas, finances, and insurance
• building a professional website on a budget
• ethics
• technology
• crisis planning
• resources for solo and small firm lawyers
• finding clients, building a referral network

Of course, you can’t learn on an empty stomach so participants will be fed breakfast, lunch, and more food and drinks at an afternoon networking reception. You can attend all sessions or just the morning or afternoon session. If you attend both, you’ll earn 6.5 CLE credits.

This is a can’t miss CLE for solo and small firm lawyers.

© Susan for Practice Blawg, 2011. | Permalink | No comments yet | Add to del.icio.us
Post tags:

Feed enhanced by Better Feed from Ozh

Thanksgiving is upon us. For some, holidays are a joyful time and a wonderful reminder of what we have. For others, however, the holidays bring stress and depression.

One way to bolster your internal defenses against stress and depression is to make a conscious effort to give thanks. Being in a state of thankfulness is healthy and leads to more contentment. Just as negative emotions make themselves more permanent in your psyche the more you focus on them, positive emotions stay with you if you make them a habit. One method of cultivating an attitude of thankfulness is to write it down. At the end of each day, write down three things you were thankful for that day. Instead of looking for things to be unhappy about, you can note that for which you are grateful.

Let me suggest a place to start:

• You have the privilege to practice law. Many dream of being a lawyer, but not everyone gets to live that dream.
• You have clients. Clients don’t just pay the bills. They refer new clients, present opportunities to learn new skills, give you feedback if you’re open to it.
• You have a life filled with opportunities to experience, grow, and change. You had the smarts and energy to get yourself through law school; surely you can find these opportunities and make the most of them.
• You have challenges. While unwelcome now, challenges will make you stronger and better in the future.

You can just “be” thankful or you can acknowledge your thanks to your family, friends, colleagues,clients, and community. Do it — in person, over the phone, with a handwritten card, or by email.

Celebrate Thanksgiving this year by trying conscious thankfulness. Better yet, make it a year round habit and see if you feel differently and your practice changes as a result.

Editors’ Note: If you are concerned about stress or depression in yourself or others, check out the resources provided free through Lawyers Concerned for Lawyers.  As we’ve noted in a previous post, we can all do more to assist lawyers suffering from depression.

© Shaun G. Jamison for Practice Blawg, 2011. | Permalink | No comments yet | Add to del.icio.us
Post tags: Depression, stress, thanks

Feed enhanced by Better Feed from Ozh

Experience – 35% of solos and 30% of small firm respondents had less than three years of experience prior to starting their firm. At the other end of the spectrum, 34% of solos and 32% of small firm respondents had more than ten years of experience prior to starting their firm.

Reasons for starting a practice – Both groups indicated that “independence” was the primary reason for starting their own practices. The same percentage of solos also indicated that quality of life was a primary reason, compared to 19% of small firm respondents.

Type of business entity – Over half (52%) of solos practice as a sole proprietorship.

Costs – 76% of solos as opposed to 54% of small firm respondents indicated that their start-up costs were less than $10,000. 63% of solos spent less than $2,500 per month on overhead. The overhead expense of small firm respondents was spread over a range.

Practice –The breakdown in practice areas was of particular interest to practicelaw staff. For both groups, the top four practice areas were family, probate and trusts, civil litigation, and business law. Practicelaw has forms and other resources for attorneys practicing civil litigation, family, probate, and real estate law. In December, we will post 15+ additional civil litigation forms and in January,  we will be rolling out a business law form set.

These are a but a few of the results that caught our attention but the report has plenty more. Check out the entire survey report here.

© Nancy Hupp for Practice Blawg, 2011. | Permalink | No comments yet | Add to del.icio.us
Post tags:

Feed enhanced by Better Feed from Ozh

Based on the number of calls we get at the MSBA, even experienced lawyers get all the boards and offices dealing with lawyers confused. So for them and especially for the approximately 600 new lawyers sworn in October 28, this post is for you. Here’s what we know:

Minnesota State Board of Law Examiners - Contact for information regarding applications, admissions, bar exams, and bar results

The Minnesota Supreme Court created this Board in 1891 to act on its behalf to license attorneys. At the time, the license fee was a whopping $5.00. For many years, law school was not required, rather an individual need only pass a written examination. Not so these days…

Minnesota Lawyer Registration Office - Contact to pay your annual registration fee (Hint: the fee exceeds $5.00)

The Office website allows you to pay your current registration statement online (or you can mail it in), update your contact and insurance information, or request a replacement license or Certificate of Good Standing.

Minnesota State Bar Association (MSBA) – Contact to join this voluntary professional association

The Bar pools the talents and experiences of lawyers, judges, and legal professionals across the state to improve the practice of law, advance the goals of the justice system, and benefit the community. Your state bar membership is tied to county bar membership; you must join one of the county bar associations when you join the MSBA. The MSBA offers lots of ways to help you practice – low-cost continuing legal education through its sections, free legal research, free forms, checklists and other practice resources, a reduced price on a document automation system, access to member list-servs, and Colleague Program to name a few. Bench and Bar and Legal New Digest keep you up-to-date. Click here for a membership guide.

Minnesota CLE  - Contact for continuing legal education opportunities

Minnesota Board of Continuing Legal Education (MBCLE) – Contact to report your CLE attendance

In 1975 Minnesota became the first state to require continuing legal education. At that time, the Board was created to administer the Supreme Court Rules for Continuing Legal Education. As such, the Board accredits courses, keeps CLE compliance records, and reports non-compliant attorneys.

Minnesota State Board of Legal Certification - Contact for information on the certified specialist designation

Created in 1985, this Board oversees the process by which an attorney can become a certified specialist. Certification is one way for the public to identify those attorneys who have demonstrated proficiency in their specialty area.The Board has accredited the MSBA to certify attorneys as Certified Real Property Law, Civil Trial Law, Labor and Employment, and Criminal Law Specialists. Click here for more information.

Lawyer’s Professional Responsibility Board - If all goes well, you will contact them for advice. If not, they’ll call you.

This Board investigate complaints against attorneys. Enough said on that.

In addition the Board promulgates opinions to interpret some of the Minnesota Rules of Professional Conduct and issues advisory opinions upon request to licensed attorneys and judges. A request can be submitted by phone or email and a staff attorney will call you to discuss your question. The Board’s policy is to treat inquiries as confidential.

Now if you’ve got all that and can keep it straight, you’ll find law practice a snap. If not, we’re here to help.

© Nancy Hupp for Practice Blawg, 2011. | Permalink | No comments yet | Add to del.icio.us
Post tags:

Feed enhanced by Better Feed from Ozh