How Important Is Having An Insurance Among Lawyers

Lawyersofsydney.com.au May 31, 2019

 

One of the things that attorneys might not ever consider is being on the other side of a legal case where they could get sued or even go to trial. If you don’t have lawyers’ professional liability insurance (LPLI), you could ask yourself why not. LPLI might not be an ice-breaker topic, but it’s an important one to take into consideration if you are a practicing lawyer.
You can read on some more about LPLI and what it is and why you need it.

Lawyering is a paid profession. As a lawyer, you are entrusted to work in the client’s best interest. Yet, sometimes, no matter how well you are prepared and how professional you are, you are not void of making mistakes. Failure to perform your duties can lead to being hit with malpractice suits or negligence. It is normal that clients who have undergone tremendous loss look for someone to blame, and that someone is often the lawyer. If you get sued for professional negligence this will cost you dearly, not only financially but your reputation is also hurt.
The smartest way to avoid this from happening is to purchase an insurance policy. An insurance policy for lawyers works a bit different than other types of insurance.

What is LPLI?

Liability policies are designed to protect your overall finances from claims made by other people. A LPLI is a special type of insurance, different than other types such as home or car insurances. These more conventional policies are provided on an ‘occurrence’ basis while LPLI insurance is provided on a ‘claims made and reported’ basis which is typical in professional liability insurance. The main difference is in what triggers the insurance. In car insurance, for example, the coverage is triggered when an event such a car accident ‘occurs’ during the policy period. Unlike car insurance which only covers accidents that occur after you purchase the policy, legal malpractice insurance covers what are known as ‘prior acts’. As long as you had a malpractice policy in place at the time, you will be covered for malpractice suits arising from your practice during that period. At www.icnj.com, different policies are available with many different types of features to consider when selecting the right policy for your law practice.

Why do lawyers get sued?

There are several reasons that answer this question. In most cases, these are the top reasons:
– Claims of negligence
– Breach of confidentiality
– Administrative errors
– Missing filing deadlines
– Intentional wrongdoings or professional misconduct

Who needs coverage?

Being a lawyer is a career, and running a law firm is a business. This means that you need to make a decision on buying an insurance policy with an informed business frame of mind. An insurance policy for a solo lawyer and small firms might not be required by law, but it is no doubt the best way to protect yourself from claims that could be made against you.

Don’t put it off any longer

If you are already running a firm or considering to go out on your own, there is no need to put off having an insurance policy. Remember that despite your best efforts, not all of your clients will be satisfied. Because you’re exposed to a number of liability risks unique to this legal profession, you need to protect yourself and your reputation with an insurance policy.

Advertise Your Legal Services