In general, malpractice refers to a perceived improper action by any person that may have caused injuries or damages to another. Established professionals such as dentists, doctors, and lawyers often carry malpractice insurance policies, and these policies, for the most part, are largely based on their occupation and, of course, their potential exposure to lawsuits and litigation. Moreover, the legal malpractice insurance cost has dramatically increased in recent times, due to the fairly recent realization of law professionals that they will be sued at least once in their career as they go through the rigors of doing their job.
What you first need to know about this type of insurance coverage is that oftentimes, the cost would differ, such as the nature of automobile insurance. This is primarily because there are various insurance companies across different states that offer distinct deductibles and rates, but in general, malpractice insurance usually pays for monetary fees, as well as for the attorney’s defense (even in the absence of the establishment of his/her guilt). To concretize this point with an example, if a client is given $50,000 because of a mistake that his lawyer may have committed, such as missing a deadline or failing to determine the right law, the insurance company will hold the responsibility of paying the client.
Overall, the established average cost for a lawyer in these particular cases ranges from somewhere between $5,000 to $8,000 per annum. However, you also need to be aware of the fact that there are several factors that may affect the cost, such as the lawyer’s specialty for example. Law professionals that are relatively pricier to have included real estate, personal injury, and divorce lawyers. Therefore, if you are thinking of preparing for the legal malpractice insurance cost, this should be an important consideration for you.
Another thing that you need to know about these insurance types is that lawyers with several lawsuits and complaints against them tend to pay a higher malpractice premium, compared to lawyers who have never been in an altercation with any of their clients in the past. Malpractice coverage also tends to be cheaper if it is purchased for prolonged longer periods of time. While numerous state bar associations offer less expensive insurance rates for their members for the most part, these rates are still largely contingent upon the law professional’s geographic location. For example, an attorney that resides in the Los Angeles will need to pay more for insurance fees, compared to say, a lawyer that’s based in Round Rock, Texas. Of course, it needs no mentioning that a big factor in the determination of this cost is the state’s overall litigation environment.
Although it might cost a law practitioner an initial legal malpractice insurance cost to avail of this insurance package, this amount, in the long run, will pale in comparison to the established benefits of having one. For given the recent statistics of lawyers being frequently sued for legal malpractice claims from their clients, this insurance policy is an effective protective mechanism for lawyers who might have a hard time in dealing with these potential adverse scenarios in the future.