If you’re a lawyer, it’s time to look at your insurance coverage. If your policies don’t include legal malpractice coverage, you don’t have the protection you need for yourself or your practice. Malpractice insurance isn’t only for healthcare providers. Malpractice insurance also extends protection to lawyers and other members of the legal profession.
Legal malpractice can happen for a variety of reasons. Some situations that can lead to claims of legal malpractice include an error or omission that causes harm to a client, breach of fiduciary duty, and disciplinary proceedings. Malpractice insurance provides protection when you face any of those situations. Here are four crucial reasons why you need malpractice insurance when you’re a lawyer.
1- Protect Your Assets
As a lawyer, you have a professional duty to provide competent legal representation to your clients. Unfortunately, mistakes can happen. When they do, your clients may choose to file a claim against you. That’s where malpractice insurance comes into the picture. Without malpractice insurance, settlements and legal fees would come out of your own pocket.
A big settlement could leave you financially ruined. Malpractice insurance provides financial protection for the legal fees and settlements associated with malpractice claims. That way, you can continue providing legal services without worrying about the financial ramifications of a malpractice claim.
2- Maintain Public Trust
When you’re a lawyer, you want your clients to know they can trust you with their legal problems. This public trust includes establishing a reputation that’s founded in integrity. When you practice law, you’re expected to maintain the highest standards of ethical conduct.
Malpractice insurance helps you maintain those standards. Legal malpractice insurance lets the community know that you stand behind the services you provide to your clients. And, that you get held accountable when mistakes happen.
3- Protect Your Clients
Your clients need to know that they have access to help when a problem arises. But, filing legal claims can get costly. Not only that, but filing a legal malpractice claim can become confusing.
That’s one of the benefits of legal malpractice insurance. When you have malpractice insurance, you provide a layer of protection for your clients. That’s because malpractice insurance provides access to the information and assistance your clients need when they have questions about the legal services they’ve received.
4- Ensure Your Own Defense
You never know when a client will file a legal malpractice claim against you, or when you’ll face disciplinary action. When those situations do arise, you need to know that you have the best defense possible. That’s one of the reasons why you need malpractice insurance when you’re a lawyer.
Malpractice insurance can cover the costs associated with defending yourself against these types of claims. This includes court costs, attorney fees, and expert witness fees. That way, you don’t need to pay out-of-pocket when you’re facing malpractice claims.
Don’t get left without the protection you need. If you don’t have legal malpractice insurance, it’s time for a change. Legal malpractice insurance protects you, your assets, and your reputation.