Professional liability insurance exists for a variety of jobs in practically every industry, but legal and medical malpractice insurance are in a class apart because of the history of those professions and the stakes at play if a practitioner makes errors. That’s why legal malpractice insurance needs to be built to suit one’s practice, including both practice areas and the size of the firm. There’s a big difference between insuring a large corporate firm and the legal malpractice insurance solo practitioners need.
Calibrating Risks and Coverage Options
The biggest difference when crafting insurance for solo practitioners is shifting gears to recognize the risks involved when a lawyer works alone are different from the ones assumed when working as part of a larger organization. Your practice areas also matter, because the financial risks involved in some areas of the law are an order of magnitude or more above those involved in other areas. Compare for example, the possible financial liabilities involved with estate planning for middle income families as opposed to those assumed when you take on high value corporate tax law clients.
Understanding Policy Limits
Your policy limits should be set by your needs and the kind of law your practice devotes itself to, but usually budget constraints also come into play. If you’re weighing a lower policy coverage maximum for budgetary reasons, consider the costs of paying out of pocket in the unlikely event that a claim exceeds your coverage. Then consider asking about ways to bundle customized coverage so you can save without compromising on legal malpractice insurance solo practitioners depend on.