Attorney liability insurance helps decrease the risk of malpractice lawsuits to law professionals. Legal malpractice is considered any act considered neglight or wrongfully executed by a lawyer. An estimated 19% of malpractice lawsuits are related to personal injury cases in the United States. Additionally, an estimated 65% of legal malpractice lawsuits are filed against firms with five or fewer practicing attorneys.
The cost of attorney malpractice insurance if very important to protecting attorneys and their firms. Some attorneys may choose not to shoulder the cost of attorney malpractice insurance. These are often attorneyes who rarely work on cases that have high stakes or involve a lot of money. Also, many lawyers who do not take on the cost of attorney malpractice insurance work for smaller firms with a lot of personal contact with their clients. These professionals usually feel they are unlikely to be sued for malpractice by these clients.
It is probably not a very wise course of action to not assume the cost of attorney malpractice insurance because there is always the possibility of a lawsuit being filed against an attorney.
According to the ABA, a legal malpractice insurer will provide resources to pay the client in the event that the attorney is found guilty of malpractice. Because these settlements or awards can be high, the cost of attorney malpractice insurance may be nominal.
The cost of attorney malpractice insurance can vary depending on the individual malpractice insurance attorney needs. For instance, the cost an attorney who works at a small firm and rarely visits a courtroom may pay between $1,000 and $3,000 per year. On the other hand, high profile attornes may have to shoulder the cost of attorney malpractice insurance to the tune of $5,000 to $15,000 a year. How much does attorney malpractice insurance costs depends on the attorney.
Having malpractice insurance may seem expensive; however, this type of insurance can protect the professional, financial, and legal status of an attorney. By paying the cost of attorney malpractice insurance, an attorney can feel more secure in his or her practice. They will feel protected against lawsuits that could be placed by clients who feel wrongfully convicted or who lost a monetary lawsuit.