When a house collapses on its occupants as the result of a construction contractor’s carelessness or inability, liability insurance becomes important. Liability insurance, available through many insurance agencies, is a policy purchased by the construction company, and usually pays for any damages as well as any legal fees that may arise. The same is true for many other businesses, including law firms. Just like insurance agents or doctors, lawyers would be wise to carry a form of attorney professional liability insurance in case of disputes from a client.
Many attorneys might wonder if it is necessary to have this type of coverage for their agency. Data shows that about 6% of the almost one-million people who make a living as attorneys will receive an accusation of liability from an unhappy client. In the last two decades, claims of liability against attorneys have increased steadily. An award given to a successful plaintiff may cost a lawyer thousands of dollars. It could also result in the revoking of their license by their respective state. Getting attorney professional liability insurance is a responsible decision for all lawyers.
Many might believe that claims against attorneys are exclusively for enormous or blunt violations of attorney-client contracts or some other gross misconduct; however, this is not the case. Generally, complaints against attorneys are for rather simple lapses, which can include mistakes made by administrative assistants, misinterpretation of law, or a previous client’s opinion that their needs were not adequately represented. Many attorneys may not even know that a mistake was made until a lawsuit has been filed. Attorney professional liability insurance protects lawyers from these types of errors.
A complaint made by a plaintiff can be as creative or “out there” as he or she decides to make it. Liability coverage typically provides indemnification and expense coverage for any claims. Generally, a liability policy will also cover a lawyer for ancillary services, such as acting as a public notary or portraying a role as a public officer or other legal occupation.
Liability insurance is a very important expenditure for many companies. It is easy to understand why traditional companies that offer building, moving, maintenance, or product-related ventures should have insurance. Liability insurance for attorneys, agents, doctors, or other professions, however, is just as imperative.
Clients can face just as much financial strain resulting from errors made by these types of professionals as they could from a construction-related company. A large number of attorneys receive lawsuits from clients who feel they received inadequate services or were misrepresented in some way. Purchasing attorney professional liability insurance is a smart business choice for any law firm or agency that is looking to protect themselves against potentially unsatisfied and clients.