As your closing partner, Two Rivers Title offers lawyers professional liability insurance through our partner company, Two Rivers National Insurance Agency (TRNIA)
What is Lawyers Professional Liability Insurance?
Lawyers professional liability insurance is a form of liability insurance that protects attorneys and other legal professionals. Attorneys work under a very high standard of accountability. They are expected to be experts in their field and accurately perform their services according to their field’s common standards of conduct. If a legal professional makes an error during the course of their job, they can be held responsible for any harm caused as a result. Lawyers professional liability insurance protects legal professionals in the event that such a mistake results in a lawsuit.
Lawyers professional liability insurance is typically issued on a claims-made basis. This means that the insurance coverage applies only to events that occur while the coverage is active. For this reason, it is important not to let coverage lapse. At Two Rivers Title, we can give you a comprehensive breakdown of your insurance options, and help you select a policy that suits your needs.
How is Lawyers Professional Liability Insurance Different from General Liability Insurance?
A general or commercial general liability insurance policy will typically protect a professional or business against injury or damage their actions may cause to others. A lawyers professional liability insurance policy, however, is designed to protect attorneys whose incorrect advice or failure to perform services could result in a lawsuit.
Lawyers professional liability insurance is important because attorneys have a lot at stake that could be damaged by a lawsuit, including:
- Expert Status: The public depends upon attorneys as experts in their field. They often assist people with difficult, sometimes dire circumstances. This high level of dependence makes them vulnerable to lawsuits, which is why professional liability insurance is necessary.
- Reputation: An attorney’s reputation among their clients and peers is very important, and a lawsuit resulting from a mistake can call that into question. They could face a lowered status, or even sanctions from regulatory authorities or related professional associations.
- Defense Cost: Defending against claims of professional incompetence or error can be very expensive and time-consuming. Trials will typically involve technical arguments and expert testimony, and it is unlikely that the issue will be resolved quickly. Also, a lawsuit can come many years after the event occurs, which can make gathering information costly and difficult.
How Can I Protect Myself Against a Malpractice Lawsuit?
There are several steps you can take to be prepared for a malpractice lawsuit, including:
- Keeping detailed files and records
- Encouraging openness and honesty from your employees
- Agreeing on expectations with your clients from the start
- Placing a high priority on ethics
- Staying within your area of expertise
Lawyers professional liability insurance can help protect you from a costly and damaging lawsuit. Contact Two Rivers Title today to discuss your options.