Billing Guidelines

Billing guidelines define what counsel may charge and how invoices must be presented. They commonly prohibit block billing, cap or bar administrative and clerical time, restrict multiple timekeepers at depositions and hearings, require task-based coding, and set approved rates.

Most carriers require electronic submission in LEDES format using UTBMS task and activity codes so invoices can be audited automatically.

Alternative Names:

Legal Billing Guidelines, Invoice Guidelines

Why it Matters?

Billing guideline compliance determines realization on insurance defense work. Automated bill review flags non-compliant entries before a human sees them, so poorly coded or vaguely described time is written down regardless of whether the work was necessary. Firms that treat billing hygiene as an administrative afterthought lose meaningful revenue on work already performed.

Frequently Confused with

Litigation Guidelines

Related terms

Litigation Guidelines

Frequently asked questions

What billing entries are most commonly rejected?

Block-billed entries, vague descriptions such as review file or attention to case, clerical and administrative tasks, multiple timekeepers at the same event, and time exceeding a task cap without prior approval.

Does bill auditing by a third party waive privilege?

It can raise the issue. Most guidelines address it through confidentiality obligations on the auditor, and some states require insured consent before detailed narratives are shared with an outside auditor.