Malpractice insurance, also known as professional liability insurance for lawyers, offers maximum coverage to your legal practice and assets. It is one of the most important insurance plans that a law firm carries.
An attorney, you and your law firm imply high standards of professionalism and services when serving the clients. However, as a human, you are prone to making mistakes that may or may not injure your client. To protect yourself from such mishaps and false claims, you need attorney malpractice insurance.
Customarily, the carrier will tailor these policies to the professional risks you may face during your career. It will also safeguard you from financial repercussions caused, if you or your firm faces a lawsuit. The insurance plan covers defense costs and pays for the settlements that arise due to the firm’s mistake.
Common causes of malpractice claims are due to misfiled paperwork, failure in professional judgment and errors in treatment. Other than that, you may face issue due to conflict of interest, fraud or issues in client consent.
What Does Attorney Malpractice Insurance Cover?
The features of professional liability insurance vary as per the chosen policy company. So when making the purchase, it is important to read the guidelines and discuss with an experienced agent who deals in attorney malpractice insurance.
Most of these policies cover error and omission claims made on the primary area of your law practice. If you get an employer-sponsored attorney malpractice insurance plan, it will protect you and your firm as well as other members of the firm.
Most of these policies cover accidental events you may face as an attorney. If you are a general practitioner without any history of claims, an insurance company will offer standard policies that are less expensive. However, those with specialties are at greater risk especially if they are working with a firm having substantial history of claims or disciplinary issues.
In such instances, they will disqualify for standard policies and require non-standard, high premium attorney malpractice insurance plans. Common areas of practice include:
- Patents, trademark and intellectual property
- Personal injury to the plaintiff
- Significant financial or personal injury due to negligence or misconduct
- Security breaches
- Residential real estate and loan modification
- Violations of entertainment law
The limit of a liability plan is the maximum coverage a policy will offer, if there is a claim against you. Your limit is directly proportional to the premiums of your plan. The higher the limit, the greater will be your monthly premiums.
Generally, your policy covers legal defense fees, which means you do not have to pay the attorney for defending you against any lawsuits and fraudulent cases.
Deductibles of Attorney Malpractice Insurance
When purchasing a policy, you have the option to decide your deductible rates. It is the cost that your firm is responsible to pay for any claim, before the insurance coverage comes in effect. They are type of risk sharing, which encourages law firms to reduce malpractice chances.
If are looking for attorney malpractice insurance with adequate premiums and deductibles, then reach out to Advanced Professionals. You can connect with professional brokers and agents, having years of experience and also can compare multiple options to select the one that best suits you.