Why Invest in Professional Liability Insurance?

“You may feel like your practice is at low risk of facing a lawsuit, so you don't need malpractice insurance. Let me give you an example of why you may need it.”

Why it's time to invest in malpractice insurance

“You're sitting in your office, a new client comes in, and they've got a great case and a great set of facts. You take on the case, you prosecute the case, and you get a great settlement. You then bill them for your time and expenses. The client receives your invoice and is unhappy with the settlement, and refuses to pay you. You then sue them to collect your unpaid professional fees.

“What happens next, your client seeks advice from another attorney who specializes in suing lawyers for malpractice. They counter with a claim of malpractice. At the end of the day, you receive a $10,000 judgment for your unpaid professional fees. Your client receives $100,000 judgment for malpractice.

“Had you had lawyer's professional liability coverage in place, the insurance company would have paid not only for the cost of your defense but would have funded the $100,000 indemnity.

“Lawyer professional liability insurance policies provide special supplemental benefits that are free of charge.

“Lawyers professional liability insurance policies go well beyond just paying for a defense cost and indemnity. They also provide some very significant supplemental benefits:

1. Subpoena coverage. To the extent you are served with a subpoena, the insurance company will find an attorney to help you compile data in response to that request.”
2. Disciplinary Actions. To the extent that a client files a grievance against you, the insurance company will provide an attorney to represent you in a disciplinary action and also will take measures to see that it does not rise to the level of a malpractice claim.
3. The loss of earnings. To the extent the insurance company requires your attendance and hearings, trial settings, and other court proceedings, they will reimburse you for your loss of earnings at a rate from anywhere from $300 to $500.”

Talk to one of our experts today!

If you're ready to shop for professional liability insurance, contact ProDefender. We can help you understand what levels of coverage you need and get the best rates on a policy to protect your assets and your professional reputation.