Errors & Omissions Part II: Attorneys
We live in a highly litigious society as business owners face increasing risks from claims and lawsuits every year. Even the legal profession isn’t immune from malpractice claims. In fact, though the number of claims brought against attorneys is leveling off, the number of large claims continue to rise sharply.
Large firms will be able to recover from the huge financial costs that a large claim can incur. But this new trend could decimate a small or midsize firm.
According to Property Casualty 360, the largest number of claims continues to originate from the real-estate practice area. Lawyers working in corporate and securities sector generated the second most claims. Conflicts of interest continue to be the most frequent alleged malpractice error. A failure to “calendar or follow-up” was the next one.
Legal claims against lawyers are continuing to increase for several factors. The sheer complicated magnitude of a transaction could result in larger claims. Complex litigation also elevates malpractice defense costs.
The increasing severity of law firm claims means law firms need to re-evaluate their insurance coverage. Many law firms may not have adequate coverage to cover their losses and continue business if large scale claims hit.
Even law firms that strictly adhere to best practices can find themselves accused of errors or omissions that result in significant loss.
An Errors and Omissions (E&O) policy from PLRisk Advisors provides your clients with coverage that contributes towards legal defense costs, damage awards and settlements. What’s more, our E&O insurance is customized specifically for the legal industry.
To learn more about our E&O policy features for lawyers and attorneys, please contact us today. (855) 403-5982