Factors That Affect Your Professional Liability for Attorneys
It may seem counter-intuitive, but new attorneys generally have lower professional liability insurance costs than more experienced lawyers. The factors that determine the amount of your professional liability for attorneys are varied, but typically the insurance company will look at the years of practice, the type of clients and cases you do, and your law specialty.
As your experience grows, you take on more complex cases, which is why your insurance premiums go up. You probably have more employees or contracted individuals providing services to assist you. With more cases, you have more deadlines. If a clerk working for you misses a deadline, your client will hold you responsible.
Discuss your insurance needs with your insurance company to ensure you have enough coverage for your practice. Your insurance agent has resources to help you minimize your risk, based on their knowledge of the industry. They don’t want to pay out for a claim any more than you do, so take their information to heart and employ best practices to keep your risk lower. Making one claim can dramatically increase your rates, so be proactive when taking on cases and clients.
Many lawyers still practice without professional liability for attorneys. You, more than anyone, should know how litigious people are. Even though it’s estimated that only about 6% of attorneys face a lawsuit each year against their practice, do you want to take that chance?