employed lawyers professional liability insurance

Why Do Employed Lawyers Need Professional Liability Insurance?

Whether you work as an individual attorney or are head of your own small law firm, you need employed lawyers professional liability insurance, or legal malpractice insurance. This type of insurance is essential for protecting yourself against negligence and misrepresentation claims made by clients.

Sources of Claims

As a lawyer, you need professional liability insurance for your businesses because you provide professional advice and services to customers. The more your practice grows, the greater the risk to you and other lawyers in the firm. Even if you didn’t make a mistake, you may still be sued for your handling of a case or a contract. Claims often arise as a result of:

  • Conflicts of interest
  • Legal work related to trusts and estates
  • Work or advice related to corporate and securities law
  • Business transactions
  • Real estate deals
  • Data breaches

Coverage Features

Professional liability insurance covers errors or omissions that occur in business dealings during the policy period. Different features may be customized and added to the policy, including:

  • Range of limits and deductibles
  • Disciplinary defense
  • Privacy breach coverage
  • Prior acts coverage
  • Extra claims expenses
  • Subpoena assistance

Because your work as an attorney exposes you to increased risk and expenses, having professional liability insurance is essential. Talk to your insurance broker about how you can protect your law firm with employed lawyers professional liability insurance.