What Does Lawyers Professional Liability Insurance Cover?
LPL insurance can include coverage for the following (coverage varies, so please refer to your policy for specific coverages and exclusions):
- Claims of negligence or mistakes
- Faulty advice
- Administrative mistakes
- Client misrepresentation
Lawyers professional liability insurance does not cover fraud or intentional criminal behavior. It also does not extend to property damage, bodily injury, or any fines imposed by government agencies.
In addition to those previously listed exclusions, others may be less obvious, so always review coverages and exclusions before purchasing a policy.
Who Is Lawyers Professional Liability Insurance Right For?
Lawyers professional liability insurance is suitable for most legal professionals, but it's particularly important for those in smaller firms who could be bankrupted by the legal defense costs associated with malpractice or negligence claims. If you provide legal services, it's vital you have comprehensive coverage against malpractice lawsuits. No matter how diligent you are, it only takes one mistake or unhappy client to create a costly and stressful legal battle.
What Risks Do Law Firms Face?
Law firms face several risks in their day-to-day operations. Professional negligence is the most prominent issue. Even the most dedicated lawyer could have a bad day and say the wrong thing or make a data entry error that costs a client dearly. Taking steps to avoid such mistakes is always advisable, but LPL insurance policies offer an extra layer of defense.
Does the Type of Law Practice Make a Difference?
While all members of the legal profession can benefit from LPL insurance, some practice areas have a higher risk of facing malpractice lawsuits. This professional liability risk is taken into account as part of policy costs. Law firms dealing with trusts and estates, securities, or business-related matters are often considered a higher risk for malpractice claims. However, no law firm is immune, and a professional liability policy is a simple precaution that can offer peace of mind.
Get LPL Insurance From Mainstreet
At Mainstreet, we specialize in providing professional liability coverage options and risk consulting for members of the legal profession. We offer a wide range of policy options, and our decades of expertise help us understand the unique challenges faced by solo lawyers and law firms.
If you're concerned about your professional liability risk and would like to know more about the policies we offer, contact Mainstreet today to discuss your options.