Legal Malpractice Cost
A professional is a person who possesses distinctive qualifications to perform specific duties. These are the individuals who render specialized services to their clients. The persons like doctors, surgeons, lawyers, attorneys, and chartered accountants fall under the definition of professionals whose services are hired by clients against some monetary consideration.
To err is human is a common saying and professionals are also human beings and prone to errors and mistakes. While performing their duties, a professional may lack some skills and capabilities, which may cost dearer to his clients. In the case of a lawyer, if due to his carelessness and negligence, a client loses a civil case or loses his freedom in a criminal case, it can cost a great deal to the client and a lawsuit can be filed against the lawyer for legal malpractice and he can be held liable for damages caused to his client.
To save the interests of the lawyer legal malpractice insurance comes handy, which insures the professional from the risk of loss of malpractice suit. A lawsuit filed against a lawyer does not only damage his finances but also affects his self esteem, morale, reputation and business relationships. Legal malpractice insurance is a great way to save him from the monetary loss of the lawsuit. The legal malpractice insurance should clearly mention the scope of coverage of malpractice and time limit of the policy.
Due to changing times, more and more attorneys and attorney firms are opting for legal malpractice insurance. The legal malpractice insurance is different from ordinary insurance because of the claims made clause, which means that this kind of insurance is time bound. It takes into consideration the period of policy regardless of when the injury incurred and the policy will cover all claims falling within the claim period.
The average cost of legal malpractice depends upon several factors like the area of expertise of the lawyer. The lawyers who have specialization in banking, divorce, real estate and property disputes are likely to be covered with higher costs. Similarly the lawyers who have time and again been sued by their clients attract higher premium than those whose track record is clean.
The legal malpractice cost is likely to be less if the whole firm of attorneys is insured with several attorneys rather than a single attorney. The cost of insurance is also less if the policy is purchased for a longer period of time. Thus it can be said that malpractice insurance is a great boon for the professionals who are always at the risk of falling prey to lawsuits filed by their clients.