After years of working your way up through the ranks of your law firm, you are ready to go out on your own start your own practice. Along with a strong list of clients, you need to make sure you are prepared if disaster strikes. If you are going out and starting your own legal practice look into how much does attorney malpractice insurance cost.
According to the ABA, legal malpractice lawsuits can be filed due to an attorney’s failure to properly or adequately pursue a case, failure to secure experts and witnesses, and failure to act before calendar deadlines and statutes of limitation. Attorney liability insurance helps decrease the risk of malpractice lawsuits among law professionals. Professional liability insurance policies are generally set up based on a claims-made basis, meaning claims only covers claims made during the policy period. Coverage is continued for as long as the policyholder provides covered services or products.
Malpractice insurance helps attorneys and firms cover defense costs during legal malpractice lawsuits. Many malpractice insurance will provide additional coverage for pre- and post-judgement interest, disciplinary proceedings and loss of earnings. It is estimated that 5-6% of all private attorneys in the U.S. encounter a legal malpractice lawsuit annually. An allegation of malpractice can cost thousands of dollars that would put tremendous strain on a legal professional or law firm.
In the legal and medical professionals professional liability insurance is required by law. Regulations for legal malpractice insurance vary from state to state. No matter where you are, there are important features to consider when looking at malpractice insurance. Prior Acts, Limit of Liability and deductible are the some of the key factors to consider when looking at attorney malpractice insurance quotes. Before purchasing malpractice insurance, you may want to research the regulations in your state beforehand.
If you are interested in starting your own law firm you must find out how much does attorney malpractice insurance cost. Consult with a malpractice insurance attorney or another professional with knowledge of attorney malpractice insurance rates. Act quickly and be prepared if disaster strikes.