As an attorney, you know that your business is to represent your clients and help them through the litigation process. If a past or present client files a claim against you, it can be a serious interruption to your business’ ability to function. A client may file a claim if they are not happy with services they received and claims the services were not properly completed or were not provided, or even if the service did not have the result that was expected. It is important to understand that general liability policies do not protect you from this type of liability, and this is why you need legal malpractice insurance.
What is Covered by Legal Malpractice Insurance?
In general, legal malpractice insurance coverage pays for expenses incurred for your defense against the suit as well as damages, judgments, or settlements that your firm is liable for. All coverage is limited to the actual dollar limits set forth in the terms of the policy. As a legal professional, you understand the time, effort, and costs of litigation. Knowing that these expenses will be covered by insurance is essential.
Cost of Premiums
The cost of premiums for legal malpractice insurance will vary depending on the insurance company you select as well as the type of clients you represent. In addition, the upper limits you select on your policy as well as the deductible you are willing to pay will figure into this cost. The bottom line is that the cost of the premium will be far less than the risk you take by not carrying insurance.
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