According to the American Bar Association, four out of five attorneys will face a malpractice claim at least once during their careers. This means that if you’re an attorney, you have an 80% chance of encountering a legal challenge of your own that could have a devastating impact on your business and even personal finances.
Having legal malpractice insurance, however, can help – especially when things go wrong. Below are a few important considerations you should take into account if you’re an attorney who wants to protect your business with legal malpractice insurance.
1. It’s Important to Find the Right Insurer for Your Area
When it comes to legal malpractice insurance, you don’t want to trust just any carrier with your policy. Some insurers are specific to certain jurisdictions, so the first thing you must do is find those who can offer you a policy in your area. The American Bar Association has a handy legal liability insurance directory you can review.
Once you’ve identified carriers you’re interested in contacting, try to find out some of the following information:
- What is the policy period?
- What are the deductibles?
- What are the limits of liability?
- Who is the “Named Insured”? (is coverage provided for all employees in the law firm, just the attorneys, or just the attorney applying for insurance?)
- Is there a retroactive date that covers prior acts?
- Does coverage include all legal services the firm offers, or just a few?
2. Apply for Insurance with a Purpose
Looking for legal malpractice insurance isn’t like finding an auto insurance rate. Just getting a quote from an insurer can involve providing all sorts of detailed information. You should invest a good amount of time in each application to make sure it’s as accurate and thorough as possible, or you might not get the best possible insurance rate.
Below are a few things you can expect insurers to be interested in knowing about you and your business:
- Number of years practicing law
- Practice areas
- If there are internal systems in place to prevent claims
- Have you disputed with clients or had malpractice claims in the past?
- Are current cases covered by another insurer?
Understand Your Policy & Its Coverage
Like any insurance policy, it’s important to become well versed in what your policy covers. Some areas that may not be initially covered include prior acts, non-firm legal activities, business activities, and cybersecurity.
If you value a specific type of protection for your business, it’s best to hunt for a policy that includes it or includes an option to purchase additional coverage. Assuming that something is covered under your policy is no way to go.
Do You Need Help Finding a Policy?
If you are looking for the right legal malpractice insurance policy for your business, reach out to Insurance Specialists, Inc. for help. We can match you with the right policy that takes your business needs into account.
For more information, contact us online today!