As an attorney, you work hard to provide your clients with the best services and advice possible. However, a client who experiences negative outcomes after using your services could present a risk for you. Lawyers professional liability (LPL) insurance is designed to protect you when this happens. Without LPL insurance in place, you could be personally vulnerable if a claim is brought against you. This type of insurance covers acts, errors or omissions arising out of your professional services as a lawyer.
Why is it important for every lawyer to have LPL insurance? First, we need to start by dispelling one of the biggest myths: Only bad lawyers have claims. This is absolutely untrue. As a matter of fact, the ABA says an individual attorney in private practice should expect two to three claims during their career.
Whether an error occurs in the service that you provide to a client, or even if you are just accused of making an error without any merit, a claim made against you and your firm could have costly repercussions. The following are just a few of the reasons every lawyer should have LPL insurance.
- We live in an extremely litigious society. Lawsuits can be filed without merit. In some cases, claims are filed in an effort to get a settlement without having a case go to court. Even if a claim is without merit, there will still be time and money expended to address it.
- A claim is expensive to defend. Regardless of merit, if a claim is filed against you, you may still have defense costs associated with your case. In fact, 50% of our annual total claim expenses are defense costs.
- No one wants to face a claim alone. If you have LPL insurance with us, you have a partner in defending any claims as well as mitigating the liability. Our in-house attorneys work with you and hire the best defense team in Oklahoma to work on your case.
- Protect your personal assets. A lawsuit can be time-consuming, potentially taking you away from your work for long periods of time. This can severely impact your ability to earn a living. Additionally, your personal assets could be at risk.
- Protect your reputation. When facing a professional liability claim, significant damage can be done to a professional’s reputation. Having LPL insurance demonstrates you place value on your good name and are prepared to defend it. It also shows that you value your clients as well.
- Protect your clients. Even good lawyers can make mistakes. If you do commit an error that financially harms your client, LPL can help make your client whole in the event of a loss.
- Some clients require LPL coverage. Certain institutional clients or lawyer referral services require LPL insurance in order for you to work on their matters.
- Get peace of mind. Even the most cautious and diligent attorneys can find themselves subject to a liability claim. Having appropriate coverage can help provide peace of mind and allow you to better serve your clients.
Insurance is a strategy used in the risk management process, and it’s simply a transfer of risk. Don’t let a malpractice case be the most expensive and time-consuming thing your office has to handle. When you partner with OAMIC, you can focus on what’s most important to you – your practice and how to best serve your clients.