If statistics are correct, then six percent of attorneys practicing in the US will have an allegation of professional liability enacted against them each year. Such claims against attorneys have been on the increase for the past two decades and are not letting up. This risk is escaped by no attorney in any area of the country no matter how large or small their practice may be. Thus the necessity of purchasing insurance for professional liability by attorneys.
Why do I need Professional Liability Insurance?
Costly, time-consuming and stressful, claims against professional liability can ruin any attorney. This terrible burden can be eased with the purchase of professional liability insurance. This is accomplished by the insurance handling three distinct areas of a claim.
– Monetary Risk is Shared : The insurance company that the policyholder has associated with will handle coverage of defense expenditures and indemnity
– Handling Service Claims : The insurance company will deal with the claim by responding and defending on the policyholder’s behalf.
– Existing Client Protections : If you are so unfortunate as to have a claim filed against you, your existing clients are protected from any losses that they may experience due to the claim.
Everyone makes mistakes, including attorneys. If you would like to fulfill the obligation you hold to your clients, even under the worst case scenario, then purchase protection.
Why people sue Lawyers for Malpractice
There are many and diverse reasons why a client may sue their attorney for malpractice but some common threads run through these cases. The most often heard reasons are as follows:
– Simple errors such as typographical ones due to administrative negligence.
– Substantive mistakes as pointed out by law
– Abandonment of Representation. This occurs when an attorney fails to meet the client’s needs as contracted.
– Trust is breached. This can be due to a conflict of interest.
– The dispute of settlements
Secondary Services provided by Attorney Professional Liability Insurance
Even in the case of malpractice, attorney protection steps in to protect both client and practitioner. Indemnification coverage and the coverage of claims expenses are both typically covered with this type of insurance. But coverage and help does not stop there, as there are many more things which can be covered. These extras include but are not limited to:
– The provision of legal advice to clients
– The action of arbitration
– The action of mediation
– The actions of an executor, administrator, guardian, conservator, trustee or receiver. This also includes the performance of further fiduciary obligations in relation the law practice of the attorney
– The public services of a notary
– The services of a Title Agent
Being covered is intelligent because none of us are perfect.