Due to the fact that more and more U.S. citizens are seemingly faced with increased debt, along with added financial burdens as a result of overextensions of credit, student loans, and inflated mortgages, many have become quite litigious. As a result of their own financial circumstances, some people that have become embroiled in lawsuits, the results of which were unfavorable, have taken action against their own lawyers resulting in a rise in professional liability claims against law firms.
Many of these attorneys, struggling to remain solvent, without the luxury of support from a large law firm, must insure against such claims or they could be forced out of business due to a large settlement favoring their accuser. Charges for alleged errors or omissions can be difficult to defend when it comes to providing proof of the performance of their duties to their clients. Many therefore seek mid size law firm professional liability insurance for lawyers as it is designed to protect attorneys against claims of professional negligence.
An increasing number of risks and exposures
Law firms have become a target of more malpractice claims annually than most any other professional sector. These lawsuits can arise from any number of accusations, and are often a result of an attorney’s failure to communicate clearly with a client. They often get cited for failure to meet deadlines, not filing a timely appeal, and even issues with billing, and a disgruntled client may jump at an opportunity to file a claim as a result.
Coverage required to deal with increased risks
With law firms finding themselves targeted by their own clients for failing to provide services as outlined, quite a few have made the decision to invest more in mid size law firm professional liability insurance for lawyers. This coverage can provide protection for law firms, and attorneys who work on behalf of the firm, when they are named in a lawsuit that could be financially crippling.
Obtaining this policy provides financial assistance for any legal fees and settlement costs as a result of a claim, along with legal counsel if required. This is provided that there were no fraudulent or criminal acts committed, nor anything deemed to be malicious or dishonest. In such cases, coverage likely wouldn’t be extended due to policy restrictions.