PilotLegis began in 1990 as the result of efforts by three law firms in Northern California comprising two general business firms and one intellectual property firm. Today Pilot consists of over 29 insured member firms, providing professional liability coverage to approximately 1520 attorneys.

The original purpose of PilotLegis was to structure a business entity that could develop the foundation of a self insuring business through the initial use of a Risk Purchasing Group. The founders of PilotLegis had nine primary objectives:

Establish predictability and stability in professional liability insurance irrespective of market conditions.

In 1992 an agreement was reached with underwriters that PilotLegis' premiums would experience controlled changes, both up and down, so that member firms would avoid the severe price swings of the open market.

Foster camaraderie among the members, in order to know their future business partners' exposures to loss.

A rigorous selective intake Program has been in place since Program inception. Only select firms are invited to apply for membership. Successful completion of an on-site risk management review is a prerequisite to the purchase of insurance through the Group.

Develop the foundation for a risk-bearing entity.

The Program has been structured as a Risk Purchasing Group so that it can establish its own claims and underwriting history. The Directors and Officers of PilotLegis have developed a preliminary plan for conversion to a Risk Retention Group or insurance company. PilotLegis has formed a number of committees whose assignments are parallel to those that would be required in a risk retention group, such as the Claims Management Committee whose function parallels underwriting.

Establish a risk management program that defines and manages the level of exposure in member firms.

The Risk Management Committee developed Pilot's proprietary risk management program to support the member firms' own risk management efforts.

Negotiate a policy form that would provide broad terms and conditions for the entire membership.

This objective has been met by the Claims Management Committee working with our broker. Improvements have been negotiated annually in the policy language to continually improve the policy form.

Secure pricing that reflects group purchasing and the risk management efforts of the involved firms.

Underwriters agreed early in the development of the Program that member firms will have a price advantage by purchasing insurance from a Group that promotes and practices risk management.

Maintain an individualized approach to pricing, including deductibles and coverage limits.

The Program has been designed so that each member firm is underwritten individually. Each firm establishes its own deductible and policy limits, one of the key indications in determining price. Also, individual firm experience, both favorable and unfavorable, is considered in pricing in relationship to similar firms within PilotLegis.

Deal only with those few underwriters willing to help build the Program as it evolves, including allowing PilotLegis to assume risk when the participants are ready.

PilotLegis chose "underwriting partners" in a wholesale market, (Lloyd's of London Syndicates and European insurance companies) rather than a general retail market. The underwriters work with the Program to underwrite individual firms now and will provide reinsurance when the Group is ready to become a Risk Retention Group. With the current soft market conditions, PilotLegis has the opportunity to change the mix of underwriters, both in Europe and domestically, to achieve the best results.

Assure that control of the Program rests with the member firms and not the insurance industry.

The corporate bylaws of the organization specify that partners of member firms will serve on the Board of Directors and member firm administrators will serve as Officers. This provides hands-on leadership to guide the growth and development of the Program.