If you are a partner in a small law firm, you may be wondering whether you need professional liability insurance. The reality is that for small law firm lawyers, professional liability is a must. Should you ever face a malpractice suit, your insurance will be immensely helpful, but in addition, carrying appropriate insurance may even help to attract clients.
First, many potential clients may expect you to carry what is known as errors and omissions coverage. Without it, you may risk losing a potential client.
Second, in the event that your firm is sued for malpractice, defense costs can be high. This is true even if you are in the right or it is a completely frivolous case. Appropriate small firm lawyers’ professional liability coverage can be a tremendous asset in offsetting these kinds of costs.
Third, mistakes and oversights can happen, even to the best attorneys. The financial burden of losing a malpractice suit can be crippling. Appropriate malpractice coverage may prevent your firm from being unduly financially burdened in this situation.
There are many additional reasons that small firms should carry professional liability coverage. However, it is easy to see how the benefits of such coverage may greatly outweigh the potential costs.