As the head of a law firm, you are probably familiar with various suits people may file when they are dissatisfied with the way a situation turns out. According to U.S. Risk Insurance, there are several areas in which lawyers at your firm could be exposed to legal risks. Professional liability for law firms protects the lawyers at your firm from having to cover the cost of legal defense on their own.
Attorneys deal with sensitive information, and there is the expectation that a client’s personal files will be kept private. Certain events, however, can compromise this privacy:
- Social engineering
- Data breach
If your firm is sued when clients’ information is leaked, you need the protection of liability insurance.
No matter how careful they are, sometimes lawyers miss things. They may be sued for misapplication of the law or for not investigating as thoroughly as the client thinks the case warrants. If documents are filed late or incorrectly, this could result in a malpractice suit. Having adequate liability coverage ensures that legal fees are paid when clients are dissatisfied with your firm’s performance.
Any time you handle a sensitive issue that requires legal assistance, there is a risk that the client will perceive your work as negligent. A solid malpractice policy steps in to protect you when this happens.