Has anyone incorporated language in their engagement letter stating that the law firm will not allow any third party billing auditor to deduct more than 10% of any bills in any one month?

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Engagement letter as in client engagement letter, right? I like the thought, but I’d say you have zero percent chance of enforcing that and keeping insurance client(s). Don’t get me wrong, the cuts are infuriating but don’t bite the hand that feeds you. Insurance lit is a volume practice, take a few petty ass cuts once in a while, learn better billing language, and move on to the other several hundred files the client is going to send you. I had about a 98%+ collection ratio because I did everything I could to prevent cuts on the front end (good billing entries). It’d be less hassle and make your clients happier if you billed “properly” than tried to incorporate language like that, especially if you ever got to the point of enforcing it.

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Are you appealing the cuts? If it’s truly cutting time that should/needed to be on those bills it may warrant a conference between the partner contact for that carrier and the claims manager (with authority to address issues with the billing company) to address.

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