As most professionals know, errors and omissions (E&O) is coverage to protect your firm, and you as an individual, in the event that a client holds you responsible because you failed to meet their expectations in providing them legal advice or services. As a legal professional, you are committed to giving your clients the best possible representation, but they may not always agree with the results.
For a smaller law firm, any potential exposures could have devastating consequences, and that’s why you should invest in mid size law firm professional liability insurance for lawyers. As client expectations continue to increase and malpractice lawsuits becoming more common, you’re put in a delicate situation. Your business and financial security depend on how well protected you are from a lawsuit or claim resulting in a judgment against you.
Legal errors are a cause for concern
When you’re in the business of providing a service to your clients for a fee, you experience exposures regarding any errors or mistakes that might occur. For example, if a client maintains that you are guilty of negligence or mistakes that caused them financial harm or make allegations to the effect that your actions resulted in misrepresentation, a violation of good faith and fair dealing, or you provided inaccurate advice, then you could be sued. You need coverage that protects you financially against any and all claims.
Most E&O policies cover judgments, settlements and defense costs
Even when those allegations are found to be groundless, it can be costly to defend against a lawsuit. This can bankrupt a medium sized firm or its individuals and that’s when mid size law firm professional liability insurance for lawyers provides protection for you in the event that any error or omission on your part has caused a financial loss for your client.
You may want to consider what could possibly happen if the service you provide is not done correctly or on time, and it brings harm to the reputation of your client. By not purchasing a professional liability policy you’re taking a serious financial risk since these types of losses are not covered under a general liability policy. Speak to an agent familiar with this line of coverage to explain exactly how it works.