Insurance has turned into a mandatory requirement in almost every field of life. Whether you are working in bank as an accountant, a doctor or a lawyer, professional liability insurance holds a great importance for every professional person. Now almost every professional body has imposed the requirement of getting the professional liability insurance for all their members. Same is the case with all the practicing lawyers because according to a newly imposed rule, all the law firms are required to get lawyers professional liability insurance and if they haven’t acquired this insurance plan then they would be required to notify their clients in advance.
Why is lawyers’ professional liability insurance necessary?
Lawsuits are a common matter in routine life. Lawyers have to face different types of clients on daily basis; some are easy to handle while others are very irritating, rigid and not-easy-to-handle. Satisfying a client is not an easy task. Some of the times, lawyers lose cases and in return get sued by the un-satisfied clients. There are many other workplace related issues where the lawyers or attorneys get sued by the outsiders or clients due to any negligence occurred on their behalf or on the behalf of their staff-member. This is the point where lawyers’ professional liability insurance jumps into the scene.
Although handling these mini-claims is not a big deal for high-class lawyers but the issue is that these claims do require extra time and extra amount of money. Majority of the lawyers are already burdened with their routine work due to which investing extra time or extra money in such claims becomes extremely difficult for them. And on the top of everything, losing these claims can prove to be quite damaging for their business reputation, their personal reputation and their financial assets.
Statistics reveal that around 6 to 7% of lawyers face the issue of professional liability every year. With each passing day, more and more clients tend to file claims against their lawyers. In such a case, if you are a lawyer then not possessing the lawyers’ professional liability insurance can be quite damaging for you.
What type of coverage is provided in lawyers’ professional liability insurance?
First of all we must understand that handling the professional liability claims might turn into an expensive practice. Traditional lawyers’ professional liability insurance basically covers the cost of the claim and the costs that will incur during the court proceedings while defending the claim. This insurance plan will also help support the clients even though the lawyer has lost the case.
Lawyers’ professional liability insurance has turned into a basic necessity for all the law professionals. As a practicing lawyer, you might be able to understand the stern nature of rules and regulations imposed by the law. And if these rules are imposed against a lawyer for showing any negligence while defending a client; they turn out to be more severe. So in order to protect yourself from the severity of laws, financial jerks and bad reputation, you must seek refuge under the professional liability insurance.