Do I Need Professional Liability Insurance as a Lawyer?
Businesses that provide services or guidance to others must consider the possibility that a mistake could cause harm to a client or customer. For the company, errors could result in financial loss, reputational damage and even lawsuits.
Law firms typically purchase professional liability insurance, also known as legal malpractice insurance, to help provide financial protection in case of third-party claims resulting from mistakes made by a lawyer or their employees at the firm.
For example, if your law firm provided incorrect legal advice that led to financial losses for a client, they may sue you.
What Does Professional Liability Insurance Cover?
Professional liability insurance policies can include coverage for claims arising from negligence, incorrect advice, misrepresentation and more. Your agent can help you understand how a professional liability insurance policy may work for your law firm.
In the event of a claim, professional liability insurance can help policyholders recoup many costs, including damages, lost revenue, legal representation, disciplinary proceedings and subpoena assistance. However, it’s important to remember that every policy is different. Work with an experienced insurance agent to determine what professional liability insurance may cover for your business and get the right coverage to protect your law firm.
Who Needs Professional Liability Insurance?
No matter the industry, customers can file claims against a business. Professional liability insurance can protect in case of allegations of negligence, errors or malpractice in providing professional services.
Considering professional liability insurance is especially important if your business works with vendors, suppliers, contractors or customers. A single claim can result in significant financial loss, which can impact the long-term viability of your business. Obtaining this coverage can give you peace of mind and allow you to focus on providing quality services to your customers.
Contact Andergray Insurance Services in Westlake Village, California, to learn how professional liability insurance may help protect lawyers and law firms. We can help you get competitive quotes from reputable insurers.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Professional Liability Insurance
Leave a Reply