Posted on: January 26, 2015 by NSM Insurance
How Much is Legal Malpractice Insurance?
One of the top concerns of legal firms and attorneys when examining their insurance coverages is how much it will cost. They may often find themselves asking if they can truly afford Legal Malpractice Liability Insurance.
There are some very rare cases in which a lawyer may choose to forgo this coverage; they may work in “back-office” sub-fields where they don’t have to deal with high-stakes criminal cases nor tort cases with large sums of money hanging in the balance. It could still benefit these attorneys, however, to obtain this coverage. In fact, it will likely cost less for them than their higher-stake colleagues.
In addition to the types of cases attorneys deal with, other factors that will alter the cost of legal malpractice insurance include how long
the attorney has been practicing, the amount of coverage they need, the amount of deductible, and the area of law that’s being practiced.
Typically, newer lawyers may find themselves paying less than their seasoned counterparts. The reason for this is likely due to the assumption that experienced lawyers are more likely to take on complex cases than newer attorneys. According to Black’s Law Dictionary. experienced lawyers can expect to pay anywhere from $5,000 to $15,000 a year for legal malpractice insurance.
While this price may be high, lawyers need to remember how much they could lose if faced with a malpractice claim. Legal Malpractice Liability Insurance covers not only defense fees, but any damages or awards given to the individual or group that sues.
To learn more about Insurance For Lawyers (IFL) and our Lawyers E&O program highlights. please contact us today at (855) 976-9898.