As tedious as this may be, reading the small print of a policy may be an enlightening endeavor. The cost of professional liability insurance is impacted by a number of things, not the least of which is the limit of liability and deductible. However, the fact that you are not required to have professional liability insurance does not mean that you can simply proceed without it. That’s known as an occurrence policy. Legal malpractice insurance policies also contain multiple exclusions such as for criminal, malicious, fraudulent, or dishonest conduct, claims made by an insured against another insured, claims resulting from liability assumed by the insured under a contract or agreement, legal professionals acting a management capacity, and many others. These would include litigation work, criminal defense, business transactions and real estate contracts representation, personal trusteeships and guardianships, estate executorships, and other advice about the law and legal liability. For a certain segment of the universe, understanding the minutiae of an insurance policy is not what we believe we were put on this planet to do. In today’s more fluid legal environment, who is doing what for whom can change quite often as lawyers accept short-term gigs, thus behaving more as freelancers. Legal Malpractice Insurance: Don't Tell? Standard Market – this is where most law firms obtain their coverage. Legal Malpractice Insurance: What You Need to Think About, Going Without Professional Liability Coverage, Disclosing Your Business Practices and Details. Emma Sepke is a marketing specialist who leads the digital and content marketing efforts at Protexure Insurance Agency, Inc. Before joining Protexure, Emma graduated from Iowa State University with a Bachelors of Science in Marketing. What Does Legal Malpractice Insurance Cover? A LAWYER’S GUIDE TO PROFESSIONAL LIABILITY INSURANCE In contemplating malpractice insurance coverage, you will want to know some details about a prospective policy, specifically what exactly is covered and what is not. Sure, the old-school charmer with a bunch of index cards constituting a conflicts check might be appealing in a this-is-how-it-used-to-be way. If you keep in mind that the legal malpractice claim is the “case within the case,” it will begin to make sense. At its core, legal malpractice insurance will protect your firm from errors and omissions that occur during the course of providing a professional service. Malpractice coverage is very important to attorneys because a bad case can produce a lot of bad publicity that can significantly harm a law firm's reputation. The Balance Small Business uses cookies to provide you with a great user experience. Sometimes referred to as extended reporting endorsement. Probably any legal practitioner can discern differences in how legal businesses run, from high-end to rock-bottom sloppy. Coverage is specifically designed to offer protection to legal professionals for the array of emerging exposures you face and can help protect your firm against losses resulting from negligence, errors, and omissions in the performance of professional services. Disability Insurance. Professional liability insurance protects legal practitioners from damages caused by professional mistakes, like malpractice. or LPL. However, we do have access to other insurance options and are happy to discuss those with you. This post will describe the structure of the legal malpractice insurance market, and identify the leading insurance carriers. It concurred with the November 2017 report recommendation that malpractice insurance not be mandated for all private practitioners. Claims-Made Coverage- Similar to an auto-insurance policy, a claims-made policy provides coverage for incidents that occur while the policy is in action. The first of which is the type of law practiced: criminal and insurance lawyers have the lowest premiums, while securities placement, class action, and intellectual property attorneys’ premiums are higher. Why do I need insurance? Malpractice insurance is necessary on top of a general liability insurance policy because it covers claims for negligence, misrepresentation, violation of good faith, and inaccurate advice. Certain practice areas tend to give rise to more claims. Further, serving as a board member for a company or non-profit organization is usually not considered to be “legal services” for purposes of legal malpractice insurance policies, even though serving as general counsel most likely would be. You need insurance in order to protect yourself and your clients. The cost of malpractice insurance coverage also provides additional benefits aside from financial stability. It varies. Nevada West Business Insurance offers custom tailored legal malpractice insurance services in addition to all the … As with other types of insurance, malpractice coverage can protect your personal assets against loss. Lots of factors go into determining whether a particular claim is covered under a particular policy. It makes sense that an insurer wants to assess its own risk and does so by asking lawyers to disclose information about how they run their practices. Comes to your defense liability under civil law, only those listed in event... Coverage to meet the needs of all areas of practice any malpractice claims but... Your risk a claim needn ’ t be an actual lawsuit, anyone. Top rated legal malpractice insurance not be mandated for all private practitioners named! 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