Deciding upon the amount of coverage for your legal liability insurance can be a tricky balance between protection and cost. You want to have enough coverage to protect your firm from liability, yet you wouldn’t want to pay any more than necessary. Understanding the factors which affect your coverage and impact expense can be useful for you to know.
Risk tolerance and risk exposure are factors which correlate with the amount of coverage. If you have a high tolerance for risk then you might not select as much coverage compared to someone who has an aversion to it.
You also might want to consider costs that could incur should a claim be filed against your firm. Expenses that arise from a claim could include defense costs, liability exposure, and lost billable time. If your practice specializes in high-risk fields, then you would want enough coverage to protect you from excessive loss.
When considering the amount of coverage for your firm, there are several factors that can influence your choice of coverage. Attitudes about risk tolerance and risk exposure as well as protection from costs such as legal defense, liability, and lost billing are all factors that require careful thought before a coverage decision. Calling upon a professional in the legal insurance field could help you with making informed decisions.