Thinking you don’t need malpractice insurance? Consider this…
You’re good at what you do. You care about your clients and have a high level of expertise to serve them well. But did you know that communication errors account for more than one-third of legal malpractice claims over the past 11 years? Deadline and time management issues are the cause of the second most common malpractice claims.
Those types of errors could happen to anyone, regardless of your years in practice or the size of your firm.
Many practitioners are tempted to forgo malpractice insurance, especially as start-ups. They just never consider they might someday end up on the other side of a claim. But not protecting yourself from the simplest, unintended misstep can have grave financial consequences for you and your law practice.
Here are the top reasons why legal malpractice insurance is so important:
• The ABA estimates that five to six percent of all attorneys will face a malpractice suit every year.
• The cost of defending against a malpractice claim far outweighs the cost of malpractice insurance.
• Disclosure requirements are changing.
• It is possible for a victim of malpractice to recover damages, even if you are not insured.
Professional Liability insurance will protect the assets of your law firm, as well as your personal assets. It protects your clients—and you—should you, or a staff member, make a mistake. And most professional liability insurance policies also provide disciplinary coverage, which may help you with the resources to protect and defend your license should the need arise.
Important considerations to keep in mind when shopping for legal malpractice insurance:
1. Does the policy you’re considering include a “retroactive date” for prior acts coverage?
2. Does the policy provide coverage for former and current non-attorney employees? What about independent contractors?
3. Does the policy cover innocent partners in cases where one member of the firm hasn’t complied with the conditions?
4. Are you aware of the AM Best rating of the insurance company? And how the rating can potentially impact the financial security of your firm?
5. Did you know that continuous malpractice coverage is important since an error may not be discovered for a number of years?
Choosing the right policy for you and your firm is complex. There’s a lot to consider. It’s not just about premiums and coverage limits. It’s important to be sure that your policy covers all possible scenarios to ensure your protection.
You can trust the experienced, expert professionals at Kaestner & Berry to know the right questions to ask and help you get the coverage you need!