Lawyers' Professional Liability Insurance
It is important for every lawyer to protect themselves against claims of malpractice. The way to do this is with lawyers' professional liability insurance. Annual estimates show that around 6 percent of attorneys in the United States may end up with a liability claim brought against them. This is a figure that is likely to rise in years to come. Also, it doesn't matter the type of law being practiced or the size of the law firm. The risk is the same. For this reason it is common sense to protect against such claims with lawyers' professional liability insurance.
There is no doubt that a claim of this nature can be very costly. And the cost can be more than just monetary. A lawyer who has a claim brought against them can find their reputation tarnished beyond repair and even lose the career they worked so hard to attain. Even if the outcome is favorable, the financial expense may have a detrimental effect on the firm. By obtaining lawyers' professional liability insurance, an attorney can have peace of mind that if they are ever sued or accused of malpractice they have some protection in place. Depending on the policy, clients of attorneys can even be protected as well.
There are all kinds of different claims that can be brought against an attorney. Many of them include mistakes that can be easily made by anyone. Examples include but are not limited to administrative errors or legal mistakes. Some clients may accuse the attorney of not properly meeting their needs, or failed to represent them adequately. There are so many possible causes of malpractice claims that it is impossible to predict them all. This is yet another reason why insurance protection is such a wise idea. There are many things that are covered under lawyers' professional liability insurance, but some things are not which are called exclusions. The exclusions depend on your policy.
If you are wondering about the price of insurance for attorneys, you should know that it varies depending on your policy and insurance company. In general, there is a base rate which is figured on a state to state basis. From there, this rate is added to depending upon the unique characteristics of the firm seeking insurance. These characteristics may include the size of the law firm, what kind of law is practiced, experience with any past claims, how many attorneys are to be covered, how long the attorneys have been practicing law, and what kind of coverage is requested. These are just some of the things considered by the underwriting department of any legal insurance company.
If you are wondering how much protection you need, this is another issue that is highly variable depending on certain factors. For example, think about how much risk you are willing to carry. How much money you have to spend on coverage. What you believe are your chances of being sued. One way to figure out the answers to these issues is to consult with a legal liability broker or insurance agent. After they have analyzed all the various factors they will discuss their professional recommendations regarding insurance coverage for your firm. While the decision is yours to make, a consultation of this type can help you choose the right policy for your needs.
Lawyers' professional liability insurance is something that every firm should consider. The cost of having it far outweighs the cost of being sued with no coverage. With so many different options for coverage, you are sure to find the right policy for your needs.