Professional Liability Insurance And Why Attorneys Need It
Even though attorneys usually need to defend other people in court, sometimes they may also need to defend themselves. This usually happens when their clients file a professional liability lawsuit against them after their case didn’t receive a favorable resolution and/or they lose a lot of money because of the outcome.
Attorneys and Professional Liability Insurance
Since attorneys are paid by their clients with hard earned money, they need to do their best in order to properly represent them in court. If they do not, then their clients can lose the case and the attorney may get in trouble for it. This type of trouble is usually synonymous with the client filing a malpractice lawsuit which can have a massive negative impact on the attorney’s finances. On top of that, the attorney can even risk being expelled from the bar.
Errors and Omissions Insurance
As an attorney, if you want to reduce the chances of ever having to deal with this, then you need to get Errors and Omissions Insurance. If you opt to get this type of insurance, the insurance company is going to pay liability compensation and all defense costs (up to the policy’s limits) in the event one of your clients files a professional liability lawsuit against you.
The Errors and omissions insurance is a special type of policy that’s recommended to any type of professional who is exposed to a certain level of risk within his profession. Some examples include insurance agents, real estate brokers, engineers, but also architects and consultants. The good news is that regardless if you make a mistake out of your own negligence, the policy is still going to cover you. As an attorney, you are also covered by this policy, so it’s highly recommended that you get one that meets your specific needs.