Attorneys are legal professionals that certainly understand the boundaries of the law. Consequently, most would assume that they would stay within the law and not require professional liability insurance for attorney coverage. The fact is that attorney’s are vulnerable to lawsuit claims by their former clients. Certainly, a very small percentage of attorneys are sued yearly. Typically, less than 10 percent face allegations of malpractice or professional, liability claim. A professional liability claim filed against an attorney could wind up costing the attorney an enormous amount of money in legal defense fees to clear their professional reputation.
Professional Liability Insurance Advantages
The truth of the matter is that any attorney could face a professional liability lawsuit. The more desperate the former client, the more likely a lawsuit filed against the attorney. Any attorney in private practice will definitely benefit from professional liability insurance and should take advantage of the insurance upon opening their practice. Professional liability insurance will serve to ease the full financial risk suffered by the attorney or the entire law firm. Of course, this depends on the type of issuance coverage that is acquired by the attorney. Some liability insurance merely covers the basics, while other insurance goes much further than merely defending the attorney.
Typical Reasons For Professional Liability Lawsuits
Certainly, the typical lawsuits against the attorney are varied. However, we take a look at the top claims. For example, the claimant might state that the attorney did not represent them properly in a court of law or that they made numerous errors in judgment. Some might even claim that the attorney was biased or did not spend enough time working on their case. Claims against attorneys also include angry former clients assumption that they were taken advantage of by the attorney that charged enormous fees or took a large portion of their settlement.
What Does Insurance Cover
Insurance generally covers the typical duties of the attorney in working with the client. It also covers defense in a court of law and protection against loss of wages. Typically, the attorney should purchase liability insurance with the highest limit that they or their firm is able to afford. This should take an enormous amount of financial burden off the attorney and the firm. Also, take a look at the deductible. The deductible is the amount of money that the attorney or the firm must pay before the liability insurance kicks in on the claim. The higher the deductible on the professional liability insurance for attorney, the lower the cost of the insurance for the firm or the attorney.