These factors will help your insurer determine how much to charge you for legal malpractice insurance.
You know that legal malpractice insurance is crucial, but that doesn’t mean you love paying for it. In fact, you probably want to do everything you can to keep your coverage as affordable as possible! Before you can start calculating savings, though, you need to figure out a baseline of how much your policy will cost. Consider these factors; they’ll make up a large part of the information your insurer uses to determine the cost of your legal malpractice insurance.
- Your type of practice. Certain types of law have a higher risk of suit than others. For example, personal injury, family law, real estate, probate law, and corporate law have the highest percentages of malpractice suits, so attorneys practicing in those areas will likely pay more than those focusing on tax, labor, criminal law, and international law, the least sued law areas.
- Your home state. Because the cost of living in California is higher than most other states, legal judgments tend to hit a higher dollar amount here than in other states. As a result, you may end up paying more than attorneys in other states.
- Your experience. New attorneys likely aren’t taking on complex cases, so they’ll usually pay less for their malpractice insurance than experienced attorneys.
- Your deductible. If your premiums feel uncomfortably high, consider increasing your deductible. That will mean paying more as a one-time expense if you do face a malpractice suit, but it will bring down the cost of your monthly premiums.
If you want an exact idea of how much your legal malpractice insurance will cost, contact NorthStar Risk Management & Insurance Services, Inc. in Walnut Creek, California. We can provide you with an accurate quote for your specific legal practice and equip you with tools to keep your coverage as affordable as possible.