Here are just a few reasons why legal malpractice insurance is so important.
Last month, we talked about the top legal malpractice claims. We broke down the statistics on frequency to give you a bird’s eye view of the risks facing your legal practice. But just because you know the top claims doesn’t mean you know what do to about them. Let’s look closely at the top reasons you could need legal malpractice insurance.
Failure to Know or Properly Apply the Law.
This claim tops the list, accounting for 11.3 percent of legal malpractice claims. It’s a fairly broad category, and it underscores the importance of being properly insured. These allegations don’t arise because you intentionally did something wrong. Rather, they come because you were uninformed. Whether you were unaware of the relevant legal principles or did the proper homework but came away with the wrong idea, you could be held liable. Fortunately, your malpractice insurance can cover you.
Planning or Strategy Error.
Coming in second place as the most common claim, this issue arises when you make a bad call. Even if you know the relevant legal principles, you could make an error and handle your client’s case in a way that your they could later allege was wrong. Whether or not the court agrees that you were in the wrong, you’ll want legal malpractice coverage to help with the expenses that result from the claim.
Inadequate Discovery of Facts or Inadequate Investigation.
Just .01 percent away from planning and strategy error, comes this potential catastrophe. The inadequate discovery of facts or inadequate investigation, are claims that arise when you didn’t do everything you could to complete a careful, thorough investigation. Even if you thought you had enough information, your client could allege otherwise. In that case, you’ll need your legal malpractice policy.