There are many lawyers who work subtracting malpractice insurance. And they also feel that their work with small scale organizations & relationship with their customers can make them resistant to claims. Many other attorneys don’t feel the need to buy an insurance policy for lawyer’s liability malpractice; it is because their chances of facing a claim are not there much. Also, in this malpractice claim, the lawyers believe that they have to pay more than their other colleagues who are in big firms.
Two lawyers even after having a clean chit record will not be paying the same amount for the insurance of lawyer’s liability. The cost of such insurance differs from lawyer to lawyer. There are many law companies that are insured as an entity, but the price of the lawyer’s liability insurance is a per-lawyer basis. Some of the key factors affecting the cost are as follows –
- The claim history
- Areas of practice
- No. of years maintaining claims-made coverage
The higher cost in lawyers’ liability insurance is paid with class action work, IP, securities placement, etc. And the ones which are on the lower end are the criminal lawyers and insurance lawyers. The cost of a lawyer’s liability insurance is more than 9 times from one area of practice to another area of practice.
Some important points to note –
- Cost of a lawyer’s liability insurance is from $300 to $500 for an attorney. Plus, there is no coverage in the areas where there is less risk. But the cost of lawyer’s liability insurance premiums can rise in the next 5-7 years of practice.
- Cost of a lawyer’s liability insurance is around $3,000 to $10,000 annually for the lawyers in the high-risk areas.
- And a fully rated policy average cost is around $1,200 to $2,500.
Now, all the pivotal points mentioned above can also differ from state and location. And for several attorneys, the lawyers’ liability cost is pretty less compared to the threat to one’s belongings. And for several lawyers, malpractice insurance is sleep insurance.