They say mistakes are excellent learning opportunities. However, for law firms, all it takes is just one simple mistake for your firm to be on the receiving end of a lawsuit that could cause financial and reputational devastation. The best way for a lawyer to be protected from the impact of a lawsuit alleging negligence or malpractice is to carry professional liability insurance. This type of insurance acts as a buffer between your law firm and the potential for financial catastrophe if you’re sued by an unhappy client.
HERE ARE THE TOP 7 REASONS LAWYERS NEED PROFESSIONAL LIABILITY INSURANCE:
PROVIDES PROTECTION FROM COMMON RISKS
Simple day-to-day operations of a law firm can put it at risk. Even the
best lawyers will inevitably make mistakes during their careers. A professional
liability insurance policy typically provides coverage for:
Negligence
Mistakes
Errors
Omissions
Undelivered services
Missed deadlines
Breach of contract
Your insurance policy can help remove the burden of claims from your
shoulders, ensuring you’re not left to pay the expenses of a lawsuit out of
your pocket.
PROTECTS YOUR BUSINESS ASSETS WHEN YOU’RE AT FAULT
Professional liability insurance can protect your practice from a
lawsuit that could become quite costly. In today’s highly litigious society,
people are quick to file lawsuits if their expectations are not met or they
feel that any wrongdoing has occurred. If the claims made by a disgruntled
client are legitimate, you’ll be responsible for thousands of dollars in court
costs and lawyers’ fees, not to mention the financial burden of settling a case
or paying damages.
Professional liability insurance is a cost-effective method for
accessing capital to cover the cost of an E&O lawsuit. It keeps you from
having to bankrupt your law firm to settle or pay for a lawsuit. What’s more,
insurance can assist with defense costs and indemnity payments. The decision to
have this policy can help keep your practice intact.
PREVENTS FINANCIAL DEVASTATION FROM FRIVOLOUS LAWSUITS
No matter how hard your work to deliver quality services, a disgruntled
client may still take issue with the advice or services you’ve provided and
decide to file a claim. Even if you haven’t made a mistake, a frivolous lawsuit
has to be defended and that could mean spending thousands of dollars in
attorneys’ fees and lost time, especially if the suit drags on for weeks or
months.
Thankfully, professional liability insurance also provides coverage for
meritless claims brought up by vindictive clients, so you’re not left with a
massive bill or potential bankruptcy just to defend your good name in court.
SAVES YOU MONEY
Many lawyers make the mistake of not investing in errors and omissions
insurance to “cut costs.” But look at it this way: would you rather pay monthly
premiums or a large sum of an unforeseen lawsuit? If you don’t have
professional liability insurance, you’ll be on the line for legal fees,
litigation, out-of-court settlements, lost wages, damages, and so on.
Professional liability insurance is all about risk management. You pay
small premiums upfront to avoid having to pay a much larger and unexpected
amount down the line.
GIVES YOU PEACE OF MIND
One of the most significant reasons you need professional liability
insurance is the peace of mind it provides. Involvement in a professional
liability claim can be incredibly overwhelming and stressful. But when you have
the right E&O coverage, you can have some solace that all will not be lost.
You’ll know that your policy will cover everything or most of what is needed to
be covered.
SHOWS A HIGH LEVEL OF PROFESSIONALISM
Your clients rely on you for professional expertise. Carrying
professional liability insurance sends a message of professionalism and
demonstrates to your clients that you are serious about their well-being.
Having adequate insurance lets them know your law firm is capable of backing up
the services provided should anything go wrong. Also, it’s not uncommon for
clients to request proof of coverage before hiring an attorney.
PROTECTS YOUR REPUTATION
You’ve worked hard to build a strong client base and reputation for your
law firm. But one legal malpractice lawsuit brought against you can ruin all
that you’ve worked for in the blink of an eye. Professional liability insurance
can help protect your reputation as a lawyer. Having a policy shows clients
that you value your good name and are going to do what it takes to right
potential wrongs.
Professional liability insurance also allows you to find a more-than-just
competent attorney for your defense.
GET A QUICK QUOTE TODAY!
Attorneys First Insurance offers top-tier professional liability
insurance that offers protection to lawyers and title agents from an array of
exposures they face. We approach every client’s situation carefully to provide
coverage customized to their risks and needs. Our team ensures you get the
right amount of coverage and still make considerable savings. Contact us today
to schedule a consultation and get a quick quote.
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