To go without small law firm lawyer malpractice insurance is a big mistake for small firms. Unfortunately, many have the misconception that they might not need it. Here is why you need malpractice insurance.
Lawsuits Happen to All Firms
It’s a common misconception that a client will only sue a law firm that has a lot of money to spare. Likewise, some firms believe it’s not worth demanding money from a firm that has very little. This is a dangerous myth. The truth is that it doesn’t matter how much money you have. You take a risk on your personal funds and assets when you don’t have insurance. It doesn’t matter if you’re a small or large firm lawsuits are always possible.
Lawsuits Are a Higher Risk to Your Firm
Small firms are at a higher risk of losing everything during a legal battle. If they are uninsured, then they are accountable for all of the legal fees. Then, if found culpable, they are responsible for more. Often, they cannot handle the amount owed. If you’re a smaller firm, keep in mind that it may also mean that your cash flow is lower than a larger firm is. This makes it harder when you don’t have coverage to protect you.
Never forget about small firm lawyer malpractice insurance. There are customizable options for smaller firms.