An attorney understands the need to adequately protect his or her career in the field of law. Having mid-size law firm professional liability insurance can help you to accomplish this. In recent years there has been an increasing number of lawsuits against lawyers by their clients, either unsatisfied with the results of a case or in some instances merely attempting to offset their legal costs. It’s an unfortunate set of circumstances but the risk of financial and professional ruin is a cause for concern.
The best protection comes in some form of professional liability coverage. As an attorney, you are faced daily with the possibility of a malpractice lawsuit arising from any number of issues. Clients may cite the failure of your work to meet their expectations or may have proof that you were guilty of making an error or omission in the course of performing work for them. This actually happens more often than one might think.
Coverage helps pay court fees, fines, and penalties
Professional liability coverage often comes with two liability limits (split limits). The per-claim limit is the maximum coverage you’ll have for any single claim in the policy period. The aggregate limit is the maximum coverage you’ll have for all claims covered during the policy period. Some policies can include a claims expense allowance, which is in addition to the liability limits.
“Claims expense” means fees charged by an attorney designated to represent you in a claim plus all other fees, costs and expenses resulting from the investigation, adjustment, defense, repair and appeal of a claim. Even when a claim is unfounded, as can often be the case, a defense or settlement can cause a great amount of distraction to you and your firm and can have a major impact. Consider the fact that it will likely reduce billable time, expose your personal assets to risk, and in extreme cases may also create a financial hardship.
You’re going to need to consider things like professional liability limits, deductibles, extra claim expenses, privacy breach coverage, prior acts coverage, perhaps even directors and officers coverage, where this may apply to your firm. Don’t risk your practice and reputation because of an error or mistake that you have been accused of making. Let mid-size law firm professional liability insurance coverage be the best investment your firm will ever make.