One of the more important decisions you make as an attorney pertains to your professional liability insurance. No matter how talented you are, you’re human and capable of making a mistake. When that happens, you’ll want to make sure you have adequate insurance coverage.
Liability insurance rates for legal professionals may be one of the more confusing aspects of practicing law. Understanding some key factors in determining rates may help ease your mind when it’s time to renew your coverage.
Professional liability insurance is essential for attorneys to operate a successful law practice and adequately protect their careers. An aspect of these policies that can be confusing is the prior acts coverage and retroactive date. Understanding every component of your policy and what to look for is the best way to ensure you are adequately covered.
Errors and omissions (E&O) insurance is a lawyer’s safety net against mistakes and malpractice claims. It is important to have sufficient coverage over the course of your career (and beyond) because everybody makes mistakes. Ensuring that you have adequate coverage begins with carefully completing the insurance application.
Not every client who walks through your door will be one you want to represent. Just because somebody is willing to pay for your services doesn’t mean it’s in your best interest to take their case.
In fact, your decision to decline a client may save you money (and a lot of trouble) down the line. From the high maintenance client to the truly malicious one, some people are just not worth the added stress and risk of a legal malpractice claim.
Topics: Legal Malpractice
A conflict of interest exists for an attorney “if there is a substantial risk that the lawyer’s representation of the client would be materially and adversely affected by the lawyer’s own interests or by the lawyer’s duties to another current client, a former client, or a third person.” Understanding how to spot potential conflicts can help reduce the chance that you’ll face a professional complaint or malpractice lawsuit.
As a new attorney or a small practitioner, you may wonder if the protection of professional liability insurance is worth the price. Even if you’re only practicing law part time, are only taking small cases, or are working for a small startup business, your best bet is to carry E&O insurance.
Topics: Lawyers Professional Liability
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.