Why Do Attorneys Need Law Firm Liability Insurance?

Why Do Attorneys Need Law Firm Liability Insurance?

Law Firm Liability Insurance

Law firms provide a crucial service to cities all over the country. This makes them particularly susceptible to unsatisfied clients filing a grievance. Although you may be required by law to have law firm liability insurance anyway, it will pay off in dividends to have it in case something comes up.

What Constitutes Legal Liability?

Someone may file a lawsuit against a law firm because he or she feels as though the firm did not adequately provide representation. If a former client lost a case, he or she may feel like it was due to a clerical error or something of that nature. Regardless of the legitimacy of the claims, it can cost your firm quite a bit to defend itself in court, which is why a comprehensive insurance policy will come in handy.

Who Is Covered by This Policy?

When you get an insurance policy for an entire firm, generally most of your attorneys and anyone is employed by the firm will be covered. A former client from years ago may file a claim regarding a lawyer who no longer works at your practice. Former employees are typically covered by policies, but check with your specific one to make sure that is the case.

Law firms consistently have a lot on their plate. Do not become overwhelmed with additional work from a lawsuit, and get a law firm liability insurance policy right away.