All Insurance Professionals

The professional liability insurance coverage is very much required for an attorney. The liability claims against an attorney may range from legal mistakes to even administrative errors. A client can think of filing a claim against an attorney’s professional liability insurance if he/she feels that the attorney hasn’t been able to represent him/her properly in court.

Risks covered by an attorney’s liability insurance

The professional liability insurance coverage differs from one profession to the other. The legal malpractice insurance policies are specially designed to cover claims that might arise from some wrongful acts committed by an attorney/lawyer in providing legal services to their clients. The coverage comprises of both claims expense converge as well as indemnification coverage.

However, certain things are not covered under an attorney’s professional liability insurance policy. Such exclusions include malicious acts, fraudulent acts, criminal activities, dishonest acts along with property or bodily injury liability generated by the law firm or the attorney himself/herself.

Time limit of liability risk coverage

You, being an attorney, may think whether or not you’ll get coverage for a work you’ve done in the past. Usually, such insurance policies provide coverage as long as the policy is in force. So, a client filing a claim against an attorney s professional liability insurance will be compensated even if the service was provided by an attorney before he/she had purchased the policy. However, the claim has to made when the policy is in force; you (the attorney) will not get coverage if the claim has been made prior to you’ve purchased the policy. Similarly, if you perform a wrongful act when the policy is in force and the client files the claim afterwards when your policy has already expired, then you’ll not get any coverage.

It is also quite important to not have any time gap in the coverage. Gaps in coverage often arise when you, an attorney, move from one firm to the other or decide to stop practicing for a definite time period. There may also be a time gap when you decide to switch from one insurer to the other. So, it is advisable that you stick to one insurance company as far as liability insurance coverage is concerned.

You can also purchase a tail insurance coverage and extend the limit beyond the initial professional liability insurance policy. Doing so, you’ll get coverage for your acts before or during the time when the policy was in force. Another way of getting such coverage is opting for ‘extended reporting period’. It will provide you with the extra time for the claims made against the work you’ve done when your policy was in force.

The premium you, an attorney, have to pay for liability insurance coverage usually starts from a base rate which is influenced by state-by-state experience. In addition to this, the insurance companies also calculate the risk factor of the firm along with the number of years one want to buy the coverage for. So, it is advisable that you talk to an insurance agent and assess the risk so as to get an idea how much you will have to pay for your liability insurance coverage. Make sure you shop around and compare policies so as to buy one that best suits your interest at the lowest cost.