Lawyers Professional Liability (E&O) Insurance
Lawyers carry a heavy burden for the people they represent. At Insurance Center of North Jersey, we understand just how heavy that burden can be, especially when things don’t go according to plan and you become the one facing a professional liability claim against your interests.
Despite your best efforts to represent your clients’ interests, sometimes things go wrong and the case doesn’t go your way. Desperate clients, looking for someone to blame for their circumstances, often find their attorneys to be convenient targets for legal retribution – leaving you to defend yourself from claims against your practice. Exactly why you need errors and omissions insurance for your law firm.
Why Do Attorneys Need Professional Liability Coverage?
Facing a professional liability claim is costly in the terms of money. Even before the case goes to a jury though, there are heavy costs involved to your reputation, your standing in the community, and your esteem among colleagues – even when you’re completely innocent of wrongdoing.
You can’t afford to allow the claims to stand without defending yourself, your practice, and your livelihood against these accusations if you have plans to continue practicing law in your community.
Then there’s the financial factor.
You know, better than most, how costly courts cases can become. It doesn’t take long for those costs to get out of hand. Professional liability insurance for lawyers helps shield you from the costs of a vigorous legal defense.
If the jury awards damages, the entire dynamic changes from a minor financial meltdown to total fiscal Armageddon if you don’t have adequate errors and omissions insurance coverage to cover the damages that have been awarded.
Legal malpractice policies serve as a buffer between your business and personal assets and the sum a jury awards. Professional liability insurance is designed to provide coverage for wrongful acts claims that arise when rendering legal services.
What Doesn’t Errors & Omissions Insurance for Attorneys Cover?
Different policies from different providers will have different exclusions. Some are for specific reasons known only to vendors while others are more common and fairly universal. The following exclusions are fairly common, though you should carefully discuss the fine print of your policy for a more complete list of exclusions.
- Deceitful/Dishonest Acts
- Criminal Acts
- RICO Violations
- Deliberately Wrongful Acts
- Fraudulent Acts
- Malicious Acts
- Bodily Injury or Property Damage
These represent a small sampling of the types of claims excluded in many lawyer’s professional liability policies. It also shows why it’s so important to be aware of the specifics of your policy.
Coverage Features You Should Consider
There are many different types of features to consider when selecting the right policy for your law practice. These are a few features you should consider carefully before you buy your professional liability policy.
- Liability Limit. This is the maximum amount the insurance company will pay out. There are two types. There is a limit for each claim and an additional total limit for each year. You set the limits and purchase your professional liability insurance coverage accordingly. Higher limits carry higher costs, but often represent fewer risks to the firm.
- Prior Acts. This is a date for which no prior acts are covered. In an ideal situation, the prior acts date will be the date the firm was formed in order to avoid potential problems.
- Deductibles. These are the out of pocket expenses the law firm must pay when a claim is lost.
Why Turn to Insurance Center of North Jersey?
Ultimately, you want to work with an independent insurance agency that isn’t linked to one specific insurance company. This gives you options to explore in order to get the best coverage for the right price for your firm’s needs.
Insurance Center of North Jersey brings 80 years of experience to the table serving lawyers in New York, Pennsylvania, and of course, New Jersey.
View out complete Lawyers Professional Liability (E&O) Insurance glossary here: http://www.icnj.com/lawyers-professional-liability-glossary/