Lawyers liability insurance is one of the most crucial forms of insurance that law firms and solo practitioners can invest in. Legal malpractice protects the law firm against lawsuits under alleged malpractice. This could be due to a client losing a case or a filing error during the process. For those new to legal malpractice insurance, here are some of the most common questions answered.
Who Does Legal Malpractice Cover?
The policies cove a firm’s present and past attorneys, along with partners, officers and directors. In some cases of counsel, non-lawyer employees and contract attorneys fall under the insurance’s umbrella. In addition, the firm itself and any predecessor firm are covered.
What Are Legal Malpractice Benefits?
Even if you run a safe practice, lawsuits may still happen. You never know when mistakes will occur or when a client will become disheartened and sue even though you did nothing wrong. Without insurance, you have to bear the cost, the time and the entire burden involved in handling the claim. Your personal and business assets become at risk. Insurance takes the burden away from you.
Do You Need Legal Malpractice Insurance?
The simple answer is yes. Lawyers know better than anyone else how time consuming and expensive going to court can be. Without insurance, all of those fees are yours.
Lawyers liability insurance is a protection that no lawyer should go without.