Legal liability insurance is not required by law but is seen as a necessity by most lawyers and law firms. Each year, approximately five percent of lawyers are sued for malpractice. Even if the claims are groundless, the cost of defending yourself can be disastrous to you and your practice. Here is an idea of the true cost of having zero liability insurance.
Costs of No Insurance
The cost of the liability insurance product is much smaller than what you would have to pay for litigation of an errors and omissions case. A claimant can still recover damages from you even if you are not covered by legal liability insurance. A lawyer that does not have insurance and represents his or herself in a malpractice case will need to pay the award if found guilty.
Benefits of Having Insurance
There is no limitation of what type of practice is considered for legal liability insurance covered. There are insurance products for all sizes of firms and all areas of practice. In addition, all jurisdictions have coverage options available to them. The wording of your policy can be individually crafted to cover any special risks inherent in your practice.
When you consider the cost of not carrying liability insurance, it is a smart move to add it to the budget of your practice or firm. When you are prepared with coverage, a claim of malpractice can be handled with minimum disruption to your practice.