Lawyers are always at risk of being sued by their own clients and often they are underinsured when it comes to an errors and omissions insurance lawyers policy. Many times, lawyers and law firms may not even know that their standard professional liability simply isn’t enough to protect them if a client or former client decides to sue them. This can lead to serious financial issues for the firm and damage the attorney’s reputation with other potential clients.
By going out and buying a policy that is specifically for errors and omissions, lawyers and law firms can be prepared if they are ever sued by a client. It is important when looking for an errors and omission insurance lawyers policy to make sure that the terms in the contract will apply to the business’ needs and that it is tailored for a law office. Law offices should make sure that they buy their errors and omission policy from someone who knows how the coverage works and comes with a good reputation. Insurance policies are legal documents and lawyers should have them reviewed by another attorney experienced in insurance law to make sure that there are no legal loopholes.
Not all policies regarding errors and omissions are the same so it is important to do some research and determine what a proposed policy will and will not cover. For example, some policies will cover defense costs and some will not while others do not cover punitive damages.