My national insurance defense firm in NYC area is on average billing clients about $200/hr. They also pay us less and demand more billable hours than most peer competitor firms. Are we billing too little or is the firm scalping us so the rainmakers take home all the money?

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Holy smokes. I don't even think the rainmakers are pulling in that much at that rate. Just doing basic math, you'd be generating $400,000. After overhead, your compensation, and assuming the insurance company kicks some of the time entries, there cannot be much left.

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Sounds like par for the course at ID firms. The trade off is you get a lot more litigation and trial experience.

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This is normal. I am also in ID and those are the rates.

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Current ID associate. What you have described seems similar to what I am also experiencing as well as my peers working for other ID firms.

Both can be true. Insurance companies keep a tight lid on rates to their vendors. That’s all you are to them, a vendor. I’ve done ID and it’s terrible.

The squeeze comes from the client. Then the partners squeeze the associates so the partners can make a decent living. The associates generally leave within 2-4 years.

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