Attorney Professional Liability Insurance

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According to The Statistics Portal, there are 1.34 million licensed attorneys in the United States. As one of these 1.34 million, you had to go through an extensive amount of education, testing and certifying. You have probably spent a ton of money on this education to help clients with their legal issues. Your clients depend on you to know the ins and outs of the legal industry and steer them in the right direction. Even if you do your job to the best of your ability, there are times when a client may not feel this way. A disgruntled client, or third party, presents a significant risk to you and your business. Protect your law firm by purchasing attorney Professional Liability insurance. Professional Liability insurance is an errors and omissions, or malpractice, policy.

What Are Attorney Professional Liability Risks?

There is a significant amount of risks involved in the legal industry, especially for a lawyer or attorney. Whether you work for yourself, or you have a larger law firm, the risks are the same. Because you are in the line of work where you will know privileged information, you are always at risk to be subpoenaed. Also, a client or third party could claim that you were negligent while performing your duties. You even have the potential of being sued for personal injury, which includes slander and defamation. Defamation is a common claim for attorney's who have to prove another person has done illegal things to help their client. Mistakes can also be a risk. You are human, and unfortunately, mistakes can happen.

What Does Attorney Professional Liability Insurance Cover?

While each insurance company is going to have different available coverages, most policies include the following basic ones:

Negligence - Remember, whether this is actual or perceived, it doesn't matter. If a claim arises that states you were negligent as a consultant, you must be able to defend yourself.
Defense Costs - Let's say you are found not guilty, regardless you will still have to pay for your defense counsel and court costs. These can rack up pretty quickly costing over tens of thousands of dollars. Protect your business by purchasing a Professional Liability insurance policy for consultants.
Additional Coverages - Most policies will have some enhancements that you can add to your policy, and the need for these will depend on your niche. If you are a consultant in the technology arena, you will want to make sure you have Technology E&O. If you are consulting on business mergers or acquisitions, there is a special endorsement for this coverage. CoverWallet’s team of educated advisors can discuss your unique situation and provide you with some options.

How Much Is Attorney Professional Liability Insurance?

There are many factors to take into consideration when determining the cost of Attorney Professional Liability insurance. First, where you practice and what type of law you practice are significant factors when calculating the premium. Second, your annual revenue will have an impact on the price, with smaller firms having to pay less. Also, if you have had any past claims that may cause your premium to be a little higher. An individual, or small law firm, should plan on paying a minimum of $1,000 annually. A firm with several employees could spend $10,000 or more. The coverage limits you select, typically $1,000,000 to $5,000,000, and any deductible you may choose can also have an impact.

Common Questions About Attorney Professional Liability Insurance - FAQ

Do I need to be a licensed attorney or lawyer to purchase this policy? Yes, the Attorney Professional Liability insurance policy will require that you are licensed to practice.
Can I be reimbursed for lost wages? Lost wages is usually an available coverage under the Attorney Professional Liability policy. You will be reimbursed for any wages lost during a covered claim. This is an excellent coverage if you get subpoenaed.
Will this cover my consulting side business? Sometimes this can be covered incidentally on your policy.