3 Tips for Understanding Legal Malpractice Insurance

Austin Legal Malpractice Insurance

Approximately five percent of all lawyers face malpractice claims annually, an expense which usually exceeds the cost of Austin legal malpractice insurance. However, you can take proactive steps for reducing the likelihood of an action being made against you.

Research Your Options

Despite your due diligence, you are capable of mistakes that might translate into a complaint or a malpractice claim. The purpose of Austin legal malpractice insurance is to protect yourself from future claims. The top three tips for understanding malpractice insurance include:

  1. Premiums increase. Malpractice insurance covers lawsuits arising from your practice in the past, so the longer you keep it, the more protection and the higher the premiums.
  2. Inside or outside the limit. A policy inside the limit takes legal costs out of your overall coverage, while one outside pays for legal defense fees on top of the plan.
  3. It isn’t always mandatory. While malpractice insurance for attorneys is advisable for your protection, Oregon is the only state that requires it.

The threat of a lawsuit should concern every practicing lawyer because even one lacking merit is expensive to defend, and a viable claim can financially devastate an uninsured attorney.

Avoiding Malpractice

Be willing to believe that a lawsuit can happen to you. Be careful, take steps avoid claims, and invest in your professional and personal future with Austin legal malpractice insurance.