Errors and omissions insurance is insurance coverage that protects professionals in different industries from risk and litigation associated with negligence or a failure to produce the appropriate results. This could be the result of negligence, medical mistakes, or any type of unforeseeable results or circumstances. Errors and omissions insurance is available to a wide variety of professionals from doctors to accountants to engineers. For legal professionals this type of insurance is known as legal malpractice insurance.
Why is Errors and Omissions Insurance Necessary?
Errors and omissions insurance for legal professionals is a necessity, but it is not considered to be a legal requirement. Most states do not require legal professionals to carry legal malpractice insurance in order to be licensed, but they are still required to notify their clients of whether or not they are carry this type of insurance. Legal malpractice insurance can be carried for a law firm or for a legal professional working independently.
Legal malpractice insurance is important to protect legal professionals serving the public because it will protect them in the event of a lawsuit that alleges negligence or some other type of error that affected the client. It could be something like misplaced legal documents, identity theft, a lawyer that is not performing properly at the firm, or any other type of issue that causes the firm or individual to fail to meet certain professional standards. Admittedly, these cases are rare, but they can and do happen to both individual attorneys and law firms. These types of cases can be extremely costly if and when they do occur as they could cost tens of thousands of dollars in damages or even more than that depending on the situation. It is for that reason why legal professionals are advised to have this insurance in place.
How to Obtain Errors and Omissions Insurance
Some law firms offer more affordable legal malpractice insurance for the lawyers working at the company. Lawyers who are employed by these types of organizations are encouraged to obtain insurance through their employer's legal malpractice insurance program. Lawyers who operate their own private practice must purchase their own legal malpractice insurance.
Legal malpractice insurance policies can vary greatly depending on the price and the amount of coverage offered. It is important to shop around and understand all of the possible coverage options before settling on the right deal. Legal professionals should review offers from multiple insurers to find the most affordable solution that fits into the price range and provides the right amount of coverage.
If you need help setting up Errors & Omissions Insurance for your legal office, give Insurance By Design a call at 972-499-3414. We look forward to working with you.