Before you buy legal malpractice insurance, make sure you know how to avoid these mistakes.
Legal malpractice insurance is critical for attorneys. You know that you need to buy this type of coverage, but do you know what to look for in a policy? Make sure you’re getting the protection your practice needs by avoiding these common legal malpractice insurance mistakes.
Not researching the insurer.
Did you find a policy that looks too good to be true? It just might be. Make sure you investigate the financial rating of your insurance company before you let them write you a policy. If you have to file a claim, you’ll want to have an insurer in strong financial standing behind you! If you don’t, your insurer could be unable to pay for your expenses.
Not learning which type of protection you need.
Legal malpractice insurance can offer either claims-made or occurrence coverage. When you get claims-made coverage, you’re protected against claims that are brought against you while your policy is in effect. If you choose occurrence coverage, you’re covered for acts of negligence – alleged or otherwise – that happened during your policy term. That means that if you let your policy expire but are being held liable for something that happened two years ago when your policy was in effect, you’re still insured.
Not understanding how your insurer will see legal costs.
Talk to your insurer to determine whether legal costs will be included within your liability limits or in addition to them. If your insurer says the former, you need to make sure to set your limits high enough cover legal expenses and the settlement.
If you want help sidestepping legal malpractice insurance pitfalls, contact NorthStar Risk Management & Insurance Services, Inc. Legal malpractice coverage is one of our specialties. We can give you a convenient application process and access to the best insurance markets. Call us today!