Lawyers need liability coverage, too. When they write opinion letters during complex transactions such as acquisitions and mergers, even the smallest errors could open the door to big legal problems. Specialized insurance policies are designed to protect attorneys from opinion letter liability.
Staying Out of Liabilitys Reach
Writing a pristine opinion letter is a delicate task. There are many rules for producing fault-free documents that dot every I and cross each t. Falling short in any of these requirements can put attorneys at risk, both legally and professionally. A sullied reputation is difficult for a lawyer to recover from.
Should a transaction fall through, lenders and buyers may seek legal redress from the other party as well as that partys legal representative. They will look for all possible errors to bolster their claims. Even if a lawyer had no ill intent, the slightest omissions or errors could bring personal legal problems.
Attorney Liability Protection
Opinion letter liability is specialized insurance coverage that protects legal firms of all sizes and the attorneys working for them. It pays for fees and court costs, even when attorneys decide to represent themselves. Tailored coverage for the legal industry protects both corporate and individual assets.
During the course of their duties, attorneys may face legal problems of their own if opinion letters are judged to be negligently incomplete or otherwise faulty. Specialized liability coverage is smart protection for both lawyers and legal firms.