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.
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.
Starting your own firm is a big step in your legal career. With all the start-up costs and decisions, there may be an impulse to defer purchases that you consider non-essential. Professional liability insurance shouldn't be one of those.