Several law firms have been forced to go out of business in recent years, in part due to costly errors and omissions that led to their demise. Lawyers have lost their jobs, and in some instances growth has become stagnant. Those that have been able to survive have done so because they were properly insured.
To offset the costs of any litigation aimed at a firm, or any of their partners, successful organizations depend on lawyer professional liability (LPL) coverage, available through NewMark Insurance, as a means to repairing any damages resulting from litigation and huge settlements brought against their firms.
Malpractice claims can be devastating
One of the most common malpractice errors is a failure to know or apply substantive law. However, that particular error does not account for the majority of legal malpractice claims. Administrative errors, client relations errors and intentional wrongdoing are among some of the main causes of client mistrust, and furthermore, can lead to acts of litigation citing any one of these issues.
Understanding why claims happen can help an agency take the necessary steps to reduce the likelihood that a claim will be made against the firm or one of its practitioners. To accomplish this, it would be helpful to understand where information on malpractice claims comes from.
When grouped together, substantive-type errors account for over 46 percent of reported claims. Another obvious error, often made by attorneys, is the failure to know or ascertain a deadline for submitting documents. Additional substantive-type errors include planning errors regarding choice of procedure, errors in public record searches, failures to anticipate tax consequences, and inadequate investigation or discovery of facts.
Another issue is giving legal advice tailored to a clients specific circumstances, where a lawyer might not dig deep enough and ask questions that could determine just what is the correct recommendation to give to their client.Clerical and delegation errors include simple clerical errors (e.g., filing a document in the wrong file), errors in mathematical calculations and work delegated to an employee that is not thoroughly checked. Whatever the cause, a professional liability policy from NewMark Insurance can help prevent a firm from losing everything theyve worked so hard for.