Why Should I Buy Legal Malpractice Insurance?
Legal malpractice insurance or lawyers professional liability insurance will not reduce your risk of loss, but like your home or auto insurance it will provide you peace of mind in the event someone alleges your professional negligence. The best insurers have comprehensive networks of skilled legal professionals with extensive experience defending legal malpractice insurance claims.
Given the current state of the US economy, we believe all legal professionals should strongly consider purchasing coverage if they do not have it already or increase their policy limits if they do have coverage for legal malpractice. Claims may increase as people and business continue to struggle.
The Missouri Department of Insurance, Financial Institutions & Professional Registration released a terrific summary of legal malpractice insurance experience in their state from 1999 to 2008. This excellent report provides a quick overview of loss data compiled from ten (10) insurance carriers writing legal malpractice insurance in Missouri for 2008. Among the many observations contained in that report, the following are particularly important:
- Claim count remained relatively stable over the ten (10) years period
- Alleged errors or omissions that occurred during the commencement of legal action or proceeding were the most frequent
- Ninety-two percent of losses in 2008 occurred among attorneys with more than ten (10) years of practice.
- Eighty-five percent of 2008 claims involved other than free legal service or member of pre-paid legal plan.
When considering legal malpractice insurance, the following should also be noted:
- The National Law Journal has reported that every attorney should expect to be sued at least once during their career.
- Defense of allegations of legal malpractice is expensive.
- Your personal assets may be at risk if you have no legal malpractice insurance or insufficient limits
- Many clients, especially larger companies, require proof of professional liability insurance before they will enter into an engagement with any legal firm
- Many, if not most, referral services require the attorney or firm have professional liability insurance in place before they will begin referring cases.
- Select states and jurisdictions now require that lawyers disclose to clients whether or not they have lawyers professional liability insurance at the time of engagement
- Finally, as legal professionals you help your clients navigate a wide range of simple and complex legal issues. If you do not purchase coverage, how can you advise that your clients should carry coverage.
For more information about legal malpractice insurance for attorneys and steps you can take to improve your coverage and minimize your cost, contact Bill Yates or Cary White at Presidio Point Insurance Services or look at our website at www.legalmalpracticeinsuranceservices.com. You may also contact us toll free at 1-800-355-1204.
Contact
Cary White, President
Presidio Point Insurance Services Inc
1-800-355-1204 x 901
cwhite@presidiopoint.com
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