Professional liability insurance is critical piece of protection for small and large firms alike. In the event a malpractice claim is filled against your firm, a professional liability policy will help cover the cost of certain legal fees, and judgments or settlements your firm may face.
- The odds
Even if your practice is small and you are extremely diligent in your work, your firm can be sued. Though you may work in a space where “everyone knows everyone” and you trust that your clients would never sue your firm, you truly never know. An estimated 4-17% of lawyers are sued each year, and of all reported malpractice claims, 70% are made against firms with fewer than five attorneys.
- Peace of mind
An error-free representation does not mean you are free from a malpractice claim. In fact, a majority of claims are filed when no mistake was made. Professional liability insurance covers you regardless if there was an error or not.
- Financial security
As an attorney, you know the cost of legal fees firsthand. Paying legal fees of even one claim can amount to well over a lifetime of insurance premiums and wreak havoc on your firm’s annual budget. Professional liability insurance can protect the financial well-being of your firm.
- Added benefits
Many professional liability insurance policies include added protection and coverage for things such as pre-claim mitigation, defense income reimbursement for trial attendance, crisis management expenses and more. Others will include free CLE and risk management credits.
- Advice and service
When you purchase professional liability insurance, the insurance company will work hard to offer advice to ensure you are protected in the best way.
Overall, it pays to protect your firm. Learn more about professional liability insurance from Lockton Affinity.