Professional liability insurance is a major component of any attorney’s long-term business strategy. Like other types of insurance, lawyer’s professional liability insurance manages risk by protecting you from potential cases that could harm your practice. No one is perfect of course, and there are costs associated with defending even unfounded lawsuits or disciplinary complaints.
A professional liability insurance policy can protect you from losing assets, paying high legal fees, and potential business failure. Litigation costs in malpractice cases are often greater than the cost of legal malpractice insurance. The relatively low cost of professional liability insurance provides valuable protection, as well as, peace of mind. No practicing lawyer should ever be without legal malpractice insurance.
HOW IS PROFESSIONAL LIABILITY COST DETERMINED?
There are many factors that go into determining the cost of professional liability insurance, therefore, it is important to keep in mind that the cost of insurance can vary widely from one attorney to another.
Areas of practice is a significant driver when determining professional liability insurance premiums. Certain practice areas generate a higher frequency or severity of loss, and insurance companies consider this when setting their premium rates.
Lawyers practicing in the following areas typically see higher premiums:
Mass Tort/Class Action Plaintiff
Product Liability Plaintiff
Residential & Commercial Real Estate
Trusts, Estates, Wills & Probate
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