Having an errors and omissions insurance policy from the very moment you begin practicing law is the best way to protect yourself against professional liability issues throughout your career. Not all policies are the same, however. Before you purchase a policy, ask the following questions.
Not all mistakes that lawyers make rise to the level of “legal malpractice.” In fact, proving legal malpractice is no easy task.
If your malpractice insurance rates are rising even though you haven’t had a claim, several common factors may be involved.
It’s great to have professional liability insurance that covers your day-to-day work, and if you’re settled at a firm that provides coverage, you may feel like you’re safe and protected.
Errors and omissions (E&O) insurance policies cover professionals, including lawyers, for their losses or liabilities if they make a mistake or commit malpractice. Although it can be uncomfortable to think about needing this kind of protection, E&O insurance is a vital part of your overall professional plan.
1. Whether or not your state requires it, you should have insurance on day one.
Starting your own firm is a big step in your legal career. Set yourself up for success by doing things right from the beginning. While it may be tempting to forego errors and omissions (E&O) insurance when money is tight, this can prove to be a devastating choice if a client sues you.
Lawyers can expect to face at least one professional complaint during their careers. When it happens to you, keep your cool. The fact is that vast majority of professional complaints are dismissed.
In hiring you as their attorney, your clients put a great deal of trust in you. They may trust you to protect their assets, their safety, their civil rights, or their liberty. As a result, you have a great responsibility to each of them.
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.
There are two ways to get coverage for claims that arise outside your policy period: tail coverage and retroactive (or prior acts) coverage.