Approximately 55,000 U.S. attorneys are likely to face an allegation of professional liability in any given year. Claims activity against attorneys has steadily increased in each of the past two decades. It does not matter what part of the country your client is in or how big their firm is- all areas of practice are at risk. These facts answer the first question many attorneys have about professional liability insurance, which is “why do I need it?” Here are some other common questions about professional liability insurance for attorneys, and answers.
What are the common causes of legal professional liability?
The causes are usually simple and straightforward, including administrative errors or substantive errors of law. Claims alleging that the lawyer completely and improperly abandoned a representation or entirely failed to address their client’s needs in any way are also frequent.
What risks does professional liability insurance generally cover?
These policies are designed to provide coverage for claims that arise from “wrongful acts” committed in the rendering of legal services, also called professional services.
Is there anything that typically is not covered?
Fraudulent, criminal, malicious, or dishonest acts on the part of the attorney are not covered. Also, services rendered to a business enterprise that is owned or controlled by the insured lawyer or law firm would not be covered. These are just a few exclusions. It’s important that your client know what resources to go to in order to learn more.
These are just a few of the common questions that attorneys and lawyers have about professional liability insurance. Other questions involve who will defend your client if they are sued, what determines their annual premium, and what size deductible they should carry. The answer to these questions will vary by case, so it’s important to be well informed for your attorney clients.
PLRisk Advisors is a leading wholesale insurance brokerage covering the professional liability market. Our team of seasoned professionals has the depth of knowledge to help our agency partners secure the best quality of coverage for their clients. We provide Professional Liability insurance products for a number of professionals. For more information, contact us at (855) 403-5982.
