Making a Case for Lawyers Professional Liability Coverage
Lawyer’s malpractice claims come in all shapes and sizes. Some claims arise from alleged: (1) errors in the procedural or substantive handling of a case; (2) circumstances where a lawyer abandoned his or her representation or failed to address a client’s needs in some way or (3) breaches of fiduciary duty concerning conflicts of interest. These types of claims are evidence that lawyers should always consider and be prepared for potential “worst case scenarios.”
Beyond potentially facing a malpractice claim, another factor lawyers need to consider is that some businesses and law firms may decline referrals to those lawyers and firms who do not carry any (or adequate) professional liability coverage. Even firms who retain lawyers for contract work often require some type of liability coverage. Don’t miss out on offers that could turn into lucrative opportunities for new business.
If you decide to forgo the purchase of a professional liability policy, don’t rely on your current level of expertise and status as the deciding factor. For even the most skilled attorneys, it’s not uncommon for a client or former client to file a complaint against you for a litany of reasons, alleging that their expectations were not met. Thus, for those lawyers who decline professional liability coverage, it should be clearly understood that potential exposure is there, and that no practicing lawyer is immune from an errors and omissions claim.
At ProSight, we’re specialists in the area of lawyers professional liability insurance. We have the underwriting expertise to help you understand your exposure to liability claims and better manage that risk.