According to the ABA, 5% to 6% of all private attorneys face
legal malpractice charges each year. Because the cost of fighting a
malpractice claim is generally higher than the cost of malpractice
insurance premiums, many law firms buy coverage.
Unfortunately, firms tend to set their policies aside to gather
dust. This can spell financial disaster when a claim arises and
coverage is inadequate. It is critical not only to buy the right
policy but also to maintain it to keep pace with changes at your
firm.
Why Insure?
Lawyers generally are not required to buy malpractice insurance,
although several states have adopted mandatory malpractice
disclosure rules, requiring lawyers to disclose to their clients
whether they have malpractice coverage. If you are concerned about
protecting your lawyers' personal and business assets, as well
as their reputations, you need adequate coverage. For most lawyers,
adequate coverage roughly equals the value or amount of
