Lawyers Professional Liability Insurance

Though lawyers are hired to protect and defend members of the public, they also need their own protection. Unfortunately, giving professional advice and offering legal defense to clients comes with a host of potential risks and plenty of opportunities for costly mistakes. Just one client lawsuit could end in serious financial losses without enough coverage.

That’s why it’s so important to work with an independent insurance agent to get set up with the right attorney business insurance for you. They can help you get covered from every necessary angle as an attorney. But first, here’s an in-depth guide to lawyer insurance.

What Is Lawyers Professional Liability Insurance?

Lawyers who own their practice need a special form of coverage called legal professional liability insurance known as lawyers professional liability (LPL). This coverage protects legal practitioners from damages caused by professional mistakes, like malpractice. Legal claims against attorneys can be extremely costly, both financially and in terms of damaging their reputation.

With an LPL policy, the insurance company agrees to cover ramifications stemming from bad advice or improper procedures. It’s crucial for law firms to equip their practice with the right protection. Legal claims and lawsuits filed by clients can be not only harmful to your reputation but also expensive to the point of potential bankruptcy.

What Does Lawyers Professional Liability Insurance Cover?

Lawyers professional liability coverage is designed to protect attorneys against damage caused by errors and negligence on the job. Coverage can reimburse you for legal and court expenses and can potentially pay to prevent any negative media attention. Due to the extremely risky nature of legal work, lawyers need a policy that addresses any unintentional harm done by them to their clients.

This specialized form of errors and omissions insurance is meant to protect legal practitioners in the event they cause harm to their clients in ways not relating to bodily injury or property damage. Your policy can cover the cost of your own attorney, court fees, and any settlements or judgments you're ordered to pay. An independent insurance agent can help equip your law firm or solo practice with the right lawyers professional liability coverage to protect against costly lawsuits.

What's Not Covered by Lawyers Professional Liability Insurance?

While lawyers professional liability insurance provides coverage for many potential sources of harm by attorneys, it doesn’t cover everything. While exclusions may vary by policy, there are a handful of commonly non-covered perils under LPL insurance, including:

Third-party bodily injury and personal property damage are covered under commercial general liability insurance, so they’re not included under LPL insurance. If you’re concerned that your business is lacking in any area of protection, an independent insurance agent can help you get set up with all the coverage your law firm or solo practice needs.

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Does Your Law Firm Provide Enough Liability Coverage?

Attorneys who work for a law firm need to be sure the business offers them adequate protection against potential errors. To determine this, lawyers should ask the following questions:

• If they are considered insured under the firm’s policy: Professional liability policies have rules about who is considered to be an insured worker at a firm. Lawyers may have to be considered true employees of a firm to be covered under the provided professional liability coverage. Some lawyers are only loosely affiliated with various law firms, in which case they would not be covered under the company’s policy, and would have to get their own separate coverage.
• What the policy’s limits are: All lawyers should be upfront and ask what kind of coverage limits their firm’s professional liability insurance comes with. If the coverage limits are inadequate, the lawyer may choose to supplement with their own policy. While minimum limits on professional liability policies in many states are either $1 million or $3 million, certain states allow for lower legal coverage minimums.
• What the policy’s deductibles are: Lawyers also need to inquire upfront about the firm’s provided coverage’s deductible amounts, and if they are required to pay this amount themselves. If the deductible seems too high, a lawyer may opt to purchase their own coverage instead.
• If the policy covers retired attorneys: Sometimes professional mistakes are uncovered after several years have passed, and the lawyer can still be sued even post-retirement. Not all professional liability policies sold to law firms offer tail coverage for retired attorneys, so it’s important for attorneys to find this out well in advance of planning to retire.

For attorneys who have further questions or still need help determining if the law firm they work for offers adequate coverage, an independent insurance agent can help.

Why Attorneys Need Lawyers Professional Liability Insurance

While offering legal advice and defense, unfortunately, lawyers aren’t immune to making professional errors. Lawyers are sued for malpractices of all kinds by their clients. In fact, four out of five lawyers will be sued for professional negligence and malpractice at least once during the lifetime of their career. The vast majority of these claims (i.e., 70%) are filed against small firms or private practices.

The Most Common Reasons Lawyers Are Sued

• Professional misconduct: Also known as any behavior by the attorney that fails to protect the health and safety of their clients.
• Administrative errors: This includes losing important paperwork and other documents, which could be extremely costly mistakes for both attorneys and their clients.
• Breach of confidentiality: Also known as disclosing personal/private data or information to a third party without the client’s consent.
• Negligence: This includes the attorney’s failure to conduct an adequate investigation, submit important court documents, offer correct professional advice, etc.
• Missed deadlines: When attorneys fail to submit lawsuits on time, it can cause the court to dismiss the case entirely, which can be an extremely costly mistake in many regards.

While lawyers are prone to making mistakes just like anyone else, these professional errors can cost them far more than just the trust of their clients. Without adequate lawyers professional liability coverage, attorneys stand to lose money, future business opportunities, and even their firm. Fortunately, an independent insurance agent can get you equipped with all the protection you need.

What Are the Benefits of Lawyers Professional Liability Insurance?

Due to the risky nature of their work, attorneys absolutely need the right protection. There are a couple of major benefits to LPL insurance policies, including:

Having adequate LPL coverage for your law firm or solo practice is crucial. Because of the risks involved in the nature of their work, attorneys need coverage to protect both themselves and the public. Causing unintentional harm is tragic enough to begin with, but with the right coverage, it doesn’t have to mean financial ruin.

How Much Does Lawyers Professional Liability Insurance Cost?

The cost of lawyers professional liability insurance can depend on many factors, including the size of your specific law firm, how many clients you serve, the type of services you offer, and the potential risk you have of doing professional harm to the public. Lawyers who practice in less risky areas often pay less for coverage than attorneys specializing in high-risk fields. Your independent insurance agent can help you find affordable lawyers professional liability coverage in your area.

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The Benefits of an Independent Insurance Agent

When you're ready to protect your law firm or solo attorney practice with the right lawyers professional liability insurance and business insurance, no one's better equipped to help than a local independent insurance agent. These agents have access to multiple insurance companies, so they're free to shop and compare policies and rates for you.

They'll present you with several quotes representing only the best options. And down the road, your agent can help you file claims and update your coverage when necessary.