Professional liability insurance, also known as malpractice insurance, is one of the most important matters an attorney must address. Just one successful claim can wipe out the assets you have worked so hard to earn. There is a high probability that lawyers will have at least one malpractice complaint filed against them given the rise in the numbers of attorneys willing to bring malpractice actions, a practice that was frowned upon by older generations of attorneys.
When securing malpractice insurance, it is crucial that attorneys have adequate coverage. The amount of coverage an attorney may need depends on several factors.
Type of Practice
Certain areas of practice tend to spawn more frequent and more costly malpractice actions. Personal injury, trusts and estates, taxation and corporate business transactions are among the areas of law that have higher exposure to malpractice claim.
Sophistication of the Clients
If you represent wealthy clients or large corporate clients, you will likely need higher levels of coverage. Wealthy clients have higher expectations of their attorneys and a greater ability to pursue legal action than smaller, less-sophisticated clients. Wealthier clients also have more potential for higher losses due to attorney errors, resulting in higher malpractice judgments.
Value of Your Assets
If you have high-valued assets, you should secure at least enough coverage to protect those assets.
It is important to take note that the amount of insurance you may need does not depend on factors such as the size of your firm, the number of clients you have, your level of experience, or whether you practice full-time. Also keep in mind that you must take into account the cost of defending against malpractice claims in the amount of coverage you need. The cost of defending against a malpractice claim can be significant even if you prevail since malpractice actions can be protracted, fact-intensive cases requiring the use of expert witnesses.
Bottom line, lawyers cannot afford not to have malpractice insurance. If you would to like to discuss your options for malpractice insurance please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:30 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!
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Rob Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953.