Having malpractice insurance coverage better protects law firms. This is the best way to combat expensive liability claims when one is filed against your practice. You need to have a policy that protects your partners as well as your firm. Lawyers are often blamed by clients for poor results during and after trials, and often become targets of litigation by disgruntled clients.
Sometimes judgments don’t particularly go their way, and they believe their attorneys are at fault even when this is not the case. Clients have even been known to attempt to negotiate their bills, using pending litigation to try to offset the amount they owe to the firm. This can have a serious negative impact on your business, and can sully your reputation as well.
Additional coverage helps to offset expensive litigation
Large firms are getting quotes for higher legal malpractice insurance limits to avoid being underinsured. When claim severity raises, firms counter by adding additional insurance to help with the costs of defense or any resulting settlement payments. While larger firms will often take out multimillion-dollar policies to cover them in any event, smaller and midsize partnerships are also choosing to increase their coverage.
Plaintiffs go after firms with the most resources
Larger law firms are particularly attractive targets for litigation simply because they carry more insurance than smaller firms. Many insurance brokers agree that law firms are targeted for a large number of reasons. Accusations range from “failing to conduct due diligence in reviewing contracts” to “failure to meet important filing deadlines.”
Plaintiffs cite being victims of a violation of fiduciary duties, failure to conduct an adequate investigation into facts, or to gather evidence and eyewitness testimony, and have even gone as far as to accuse their counsel of violating professional standards of conduct.
When practicing law it’s important to get legal malpractice insurance quotes before settling on a policy. You must assume that there are many ways in which a client may seek retribution when they believe you may have acted in an unethical way, and you need to be protected.