Lawyers make it their jobs to know the legal systems, but even they are not immune from mistakes. Without the proper coverage, lawyers could wind up having to pay large amounts in the event of a claim against them, regardless of firm size. Even if the accused lawyer is eventually not deemed liable, money will have been spent going to court. This is why legal professional liability insurance should be an important element in a lawyer’s business practice.
It is important to recognize that there are many instances the policy does not cover, like fraud, property damage, criminal acts, bodily injury and a claim between insured lawyers at the same firm. However, the covered activities tend to coincide with legal services lawyers provide, like issues that arise from possessing membership of a professional organization or acting as the executor of a client’s estate. If a lawyer is negligent regarding a case, such as failing to properly fill out essential paperwork or failing to fully represent the client’s case, insurance can typically assist with these claims. The type of risk a lawyer or law firm faces can be influenced by many different areas of practice, but an insurance professional should be able to offer a legal professional liability insurance product with suitable coverage.