Just like other professionals, lawyers are prone to making mistakes. When an attorney fails to meet the set standards and codes of professional conduct or perform to the discontent of a client, he or she is deemed to have committed legal malpractice. And different professional blunders bear a varying magnitude of consequences. The most common reactions from dissatisfied clients are legal malpractice lawsuits. Whether experienced or still learning the ropes of legal practice, every lawyer faces the risk of being sued for legal malpractice.
Depending on the charges pressed against an attorney or a law firm for legal malpractice, the sequel can be dire. Leaving the attorney or law entity with an unbearable burden of offsetting damages incurred while presenting a vexed client. That is why we have attorney malpractice insurance offered by various insurers. That indemnify lawyers and their firms against potential risks presented by legal malpractice charges. Some of the factors to consider while adopting insurance for attorneys include:
1. Area of practice
Not all facets of the legal profession bear the same risk. Whereas some areas of the practice are seamless to handle, others carry great precariousness. Example of high-risk quarters includes trusts and estates, personal injury cases, and intellectual property. While handling such complicated cases, clients might have unrealistic expectations of the outcome. Presenting higher potential of suing the attorney handling the case for legal malpractice. Consequently, a law firm or attorney dealing with high-risk situation need to invest in malpractice insurance significantly.
2. The law firm’s reputation
In the legal profession, it is a reputation that sells the services of an attorney or law firm to prospective clients. Some clients specifically only work with lawyers that maintain legal practice insurance. To win the confidence of such clients, it is therefore mandatory that you subscribe to a guarantee. On a different note, a growing firm with a high volume of clientele, which is progressively building its public image should consider malpractice insurance as a worthy investment. Any stroke of bad luck can be encountered in the course of duty.
3. The amount of premiums and deductibles
Different insurance companies offer varying premiums and deductibles. Before subscribing to indemnity for attorneys, it is essential to consider whether the premiums offered are cost-effective and budget-friendly. However, beware of insurers that offer extremely low premiums, as they may not provide the coverage you anticipate in the long run. On a different note, if your potential insurer is offering discounts for the sizable amount of subscription you will be making with them, go for it. As discounts can help save up on the costs of the premiums.
4. Payment of claims
Finally, you need to scrutinize how well your potential carrier pays insurance for attorney claims. A company whose majority of policyholders are satisfied with how they handle claims are suitable to partner consider. They will be straightforward and present a seamless payment of claims in case your firm or any of its insured legal associate suffers legal malpractice charges.