Yes! Professional liability insurance (PLI) can provide your law firm a defense in the event a claim filed against you, whether an error was made or not. Should a claim occur, PLI coverage can provide you with access to a defense attorney seasoned in lawyer’s malpractice claims caused by:
- administrative errors,
- unintentional negligence,
- missed deadlines,
- alleged misrepresentation,
- inaccurate advice,
- alleged baseless charges, and so on.
Access to this type of support when dealing with a malpractice claim can help eliminate the loss of time and money (and not to mention stress) that defending a claim requires. Having someone on your side to offer advice and answer questions is invaluable.
Many states require lawyers to disclose whether or not they carry malpractice insurance. Some states may require clients to sign a written disclosure acknowledging that the attorney is practicing without coverage. Requiring potential clients to sign these disclosures could make them question working with you. Or you may practice in a state that requires PLI. Oregon and Idaho, for example, currently require attorneys to carry professional liability coverage. More reasons why yes, you do need professional liability insurance.
Lawsuits can happen whether frivolous or not. Without adequate coverage protecting your firm, a lawsuit could end up so costly, it could leave your business in ruins.