Manage Your Legal Malpractice Insurance Costs

How much is legal malpractice insurance? Many factors go into computing your malpractice insurance costs. It is a very complex formula, and while you can control some of the factors, many are outside of your purview. However, when you understand what your premium is based on you will be more prepared to discuss your options with your agent.

Unlike your auto insurance, new lawyers often have lower costs for malpractice insurance because they take on less complex cases. Higher risk cases means that you incur higher premiums. Complicated cases have more opportunities for errors. By the time you are ready to take on these types of cases, you have more assets, income, and experience. You have more to protect, and your insurance will reflect that.

The area of law will affect your insurance premium. According to the ABA, personal injury, family law, probate law, and corporate law areas have the highest percentage of malpractice suits. International law, criminal law, tax, and labor areas have the lowest number of malpractice claims.

It’s very difficult to answer the question, how much is legal malpractice insurance? Your insurance agent is the one most qualified to give you the answer based on how much of a deductible you want and the amount of coverage your firm wants to cover your liability in case of a malpractice suit. If you are trying to control costs of your insurance, ask for different scenarios which could change the amount you pay. However, make sure you have enough coverage to protect your firm.

 

photo credit: CoastalLaw cc

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