When considering legal malpractice insurance cost, many questions come to mind like: Why do I need legal malpractice insurance? What types of policies are out there? And, how do I find malpractice insurance? Here are a few tips to answer those questions.
It’s true that many areas do not require you to have malpractice insurance. However, with the rise in lawsuits of late, many professionals believe it has become a necessity. Lawyers not only have to worry about claims made against them from clients, but also third party sources like share holders. One claim can make everything you’ve worked so hard to achieve, disappear in a short amount of time.
A few primary types of coverage to consider are liability, umbrella, and tail coverage. Liability is the most basic and covers any claims made in a certain amount of time. Umbrella generally provides more thorough coverage. Tail coverage is an extension of coverage after a policy expires. Usually though, there is a stipulation that the claim must have taken place during the coverage time period.
No matter what you choose, make sure you do plenty of research on the company itself, the policies offered and the legal malpractice insurance cost. Your bar association is a good starting place. You can also work with a broker to give you advice and direction. Also, you can find a lot of information online. Take your time and you’ll have the protection and peace of mind you deserve.