I am often asked what is the one thing that insurers should look for in evaluating an AFA agreement. My response is always to not just look at the bottom line but to also look at the firm’s business model. Can the firm’s business model support the AFA?
If you want to get the “deer in the headlights look” from an attorney who is pushing an AFA as a way to save defense costs, ask what has the firm done differently in its business operations to be able to support the AFA. If they have made no real changes, then they probably don’t have a clue whether they can sustain an AFA model for their insurance defense work. Continue reading