Although it seems unlikely, a situation can come about where your legal clients can turn right around and sue you instead! This might happen if they’re bitter from losing a case. It could happen if they somehow weren’t satisfied with your services. It could happen for any number of reasons.
The current economic climate only increases the chances of a malpractice suit happening. These suits can cost you thousands of dollars, and damage your reputation as well, which is an incalculably, devastating cost. This is why you have to protect yourself with attorney liability insurance, otherwise known as attorney malpractice insurance.
So how much does attorney malpractice insurance cost? Attorney malpractice insurance rates are determined by something called the limit of liability. This is the maximum amount that the insurance company will pay for the coverage. Most typically, these limits are expressed “per claim” and “aggregate,” which is the most the insurance carrier will pay for all claims during the policy’s period.
It’s up to you or your firm to decide what your limit of liability should be, and then weigh that requirement against the cost of the insurance. Naturally, the higher the limit of liability, the higher the attorney malpractice insurance rates will be.
If cost is a huge factor, and you want to make the most out of your attorney malpractice insurance rates, then it would be worth considering having a higher deductible, which is what you’d pay out-of-pocket. Having a higher deductible could help generate premium savings, helping you get the most out from your attorney malpractice insurance rates.
You, as an attorney, need to protect yourself, but you want to do so affordably. Attorney malpractice insurance rates are all based on your coverage needs, so it’s really up to you to figure out how much coverage you need. If you have any questions, feel free to ask in the comments. More can be found here.