For anyone that owns or operates a small law firm, your own clients, when dissatisfied with the professional services you provide, may target you. Anytime youre in the business of giving professional advice and opinions to others, you run liability risks and should seriously consider purchasing small law firm professional liability insurance for lawyers, as this is important coverage to have.
In many instances where you enter into a contract with a client they may require you to have professional liability coverage as a means of protecting their interests. Look, everyone has different needs and operates under different circumstances, so as a means of protecting yourself youll want to make sure that you currently have the proper policy in place.
Liability coverage pays for defense and other related costs
This coverage is very important since you may be deemed responsible for things that are out of your control. Even if you provide your clients with stellar legal advice, should they lose their case in court they may determine that you are at fault for any decision that is not in their favor. They will then look for any possible errors or omissions you may have committed, or they feel you may have committed, during the course of your handling of their case. You could face litigation and damaging financial consequences as a result.
There are many benefits to having professional liability coverage, including personal injury coverage, coverage for defense costs, and even full severability (for partners deemed innocent of any wrongdoing). The main focus of this coverage is to provide defense for any allegations related to claims of a failure to perform a service as stated in the contract.
A claim made for breach of contract frequently occurs where there are allegations of negligent performance as a result of contractual obligation. Implied in most professional services contracts is the promise that professional services will be performed in a non-negligent manner.
If you own, or are partnered in, a small firm, having small law firm professional liability insurance for lawyers simply means that, if accused of a negligent act, or other error resulting in damages, the policy will be beneficial to you whenever you face litigation.