Attorneys are typically accustomed to representing clients in legal battles, so it can come as a surprise when they are suddenly the ones being sued. Savvy lawyers protect themselves against these risks by purchasing insurance. Even those who are initially concerned about legal malpractice insurance cost think again after realizing that the risks for lawyers are very real.
Insurance Helps Reduce Risk Exposure
It can seem like a tragedy for a successful legal practice to go under because of an unexpected legal battle. Still, as soon as an attorney or a firm gets hired by their first client, their practice faces certain professional risks. These risks can take many forms. For example, a former client who was unhappy with the outcome of their legal troubles might react by filing a malpractice lawsuit. The former client might diminish the firm’s reputation by making defamatory statements online. He or she might even file an official complaint with the state bar association. The results could be devastating for the attorney’s legal practice.
Malpractice Lawsuits Can Arise Out of Many Situations
There are many different scenarios that can lead to a malpractice complaint. Lawsuits can be based on issues such as:
- Errors or omissions
- Late or missed court filings
- Failure to file within the statute of limitations deadline
- Mistakes made by office staff
Lawyers can even be sued based on the unpaid pro bono work they do for clients. For all of these reasons, the legal malpractice insurance cost that attorneys face is well worth it because it puts their minds at ease that their practice is protected.