Client lawsuits occur regularly. Small and large firms are prone to unhappy clients. Unfortunately, without lawyers professional liability insurance, the legal fees to pay for a suit may break an uninsured business. These are some of the most common misconceptions that keep lawyers from investing in protection.
Clients Are More Likely to Sue if You Have Insurance
Many believe that you are a target if you have insurance. People are more likely to sue because they know that there is something to gain. This is one of the biggest misconceptions. Your insurance status is not revealed until a lawsuit has been filed. This means that there is no way that the client knew about it to begin with. Being insured does not change your risk.
Risk Management Is More Effective Than Insurance
Managing risk is a healthy practice for any law firm. Practicing care with clients is important. This doesn’t mean that you should skip out on insurance, however. There is always going to be a lawsuit risk. No matter how extensive your risk management plan is, you may face a lawsuit. Without lawyers professional liability insurance, these suits are damaging.
To protect against any type of suit is crucial. Lawyers understand the expense of legal fees and the risk of a case going poorly. Without a policy, you are on your own.