Lawyers Professional Liability

If you’re already covered by legal malpractice insurance, you’re on the right track. Having professional liability insurance in place from the very beginning of your legal practice provides valuable protection for your reputation, your livelihood, and your assets. If you do legal work for more than a single firm, however, it’s important to ensure that all of the work you do is covered. Even after you purchase E&O insurance, holes in your coverage can leave you vulnerable to potentially catastrophic financial losses.

There are two ways to get coverage for claims that arise outside your policy period: tail coverage and retroactive (or prior acts) coverage.

It’s important to ensure you have the right combination of these types of coverage anytime you make a change in your legal professional liability insurance so you have the protection you need.

Legal malpractice insurers calculate your premiums based on several factors, including the length of time you’ve been in practice, the area(s) of law you practice, your risk management practices, and your history of claims.

Let’s face it: no one enjoys reading insurance policies. The fact is, however, that skipping this important step in protecting your legal practice and personal assets can have disastrous consequences. Be sure you understand the terms of any professional liability policy before you purchase it. If you’ve already purchased errors and omissions insurance and aren’t completely clear on its terms, take the time now to look over your policy, and consider whether it’s really giving you the protection you need.

As an attorney, you should always be alert to the possibility of being sued—even when you haven’t made a mistake. Each year, a substantial proportion of attorneys face malpractice claims, and the average lawyer faces three such claims throughout a legal career*.

However, losing a lawsuit isn’t the only threat you face when you have performed less than perfectly for a client. When you do make a mistake (and we all do at some point), it’s important to be proactive in protecting your assets, your practice, and your reputation.

Legal professional liability insurance rates can be baffling to many attorneys. However, there are a few key variables that influence what kind of rate you can get for any given policy. Learning how these variables affect your rates can help you keep your insurance costs under control as well as understand which factors are beyond your control—and why they affect your rates anyway.

As a practicing attorney, you understand the importance of ensuring that you’re serving your clients as effectively as possible. Despite your best efforts, the odds are you’ll face a malpractice claim at some point. A substantial percentage of attorneys are subject to professional liability claims each year, and the average attorney faces three such claims throughout a legal career.¹ The good news is there are steps you can take to minimize your risk of legal malpractice claims and resulting losses.