Deciding on the Proper Amounts of Attorneys Liability Insurance
Attorneys professional liability insurance coverage amounts and costs can depend on the size of the firm, the types of cases litigate and services provided, among other factors. But many firms may not have the right amount of coverage – especially during tough economic times when a growing number of firms lowered their coverage levels in order to lower premiums, which could be a great concern due to the litigious nature of our society.
In most jurisdictions E&O insurance is required, if not by law, merely as a common sense approach to being in business. Why would you want to risk your practice by not having a policy that protects you in the event that a client sues you? Notwithstanding other matters, the reality is that many lawyers like anyone else in any other line of professional work want to protect themselves from a disaster (even if they feel chances are it won’t happen to them) or potential significant liability judgment.
Getting the right amount of coverage
Different types of lawyers and firms have different risks and exposures. Given that reasoning, the issues involving coverage are often defined by what is seen as an appropriate premium level. Your law firm should approach its professional liability coverage needs from a position of clarity, making determinations based upon an internal analysis of the risks you may run in handling your particular business. Firms and individuals that are generally considered to have greater risks (among them defense attorneys and personal injury lawyers) therefore require higher coverage levels.
Firms handling ordinary business affairs are generally considered to have less risk. It is really up to you to determine where you fit in with regards to the consideration of how much risk is inherent and how much attorneys professional liability insurance is right for you. Speak to an insurance agent to help you determine the appropriate levels of coverage you may need to protect yourself and your business.