Though lawyers are hired to protect and defend members of the public, they also need their own protection. Unfortunately, giving professional advice and offering legal defense to clients comes with a host of potential risks and plenty of opportunities for costly mistakes. That’s why it’s so important to work with an independent insurance agent to get set up with the right attorney business insurance for you.
While offering legal advice and defense, unfortunately lawyers aren’t immune to making professional errors. Lawyers are sued for malpractices of all kinds by their clients. In fact, four out of five lawyers will be sued for professional negligence during their lifetime of their career. The vast majority of these claims, or at least 70%, are filed against small firms or private practices.
Insurance exists for the purpose of protecting persons and organizations from the adverse financial consequences of certain unpredictable events, regardless of the coverage line being considered. For general liability insurance, the unpredictable event that constitutes the subject of the insurance is a claim of legal liability arising out of a company’s operations, premises, products, and completed work.
A business income coverage form is an extension of the commercial property type policy which funds a company’s loss of income due to a slowdown or temporary suspension of normal operations which stem from damage to its physical property. Coverage typically includes the loss of income but excludes ordinary operating expenses.
As a professional offering a service to the public, there’s always potential to do unintended harm. In the event a case is filed against a lawyer claiming they’ve misrepresented their client or offered bad advice, a costly lawsuit could easily arise. Having the right coverage is crucial to help avoid huge potential fees needed to sort ugly legal matters.