Lawyers that choose to go without malpractice insurance believe that because they work for a small firm and maintain close relationships with their regular clients, that they are immune to claims. Other attorneys believe that the chances of them facing a claim aren’t great enough for them to purchase a Lawyers Liability Malpractice insurance policy. The flaw in this logic is that small firm lawyers are just as likely to have a malpractice claim as some of their more high profile peers. Many small firm lawyers believe that they will have to pay just as much as their large firm peers.
The cost of Lawyers Liability Insurance varies widely. Even with having a “clean” record no 2 attorneys are going to pay the same for their coverage. Even though the firm is insured as an entity, the cost generally is on a per attorney basis. The key factors assuming no claims are areas of practice, number of years having claims made coverage and limits.
The costs for different areas of practice can be 5 to 10 times from one area for practice to another. Criminal Law and insurance defense generally on the lowest end of the spectrum; with Securities Placement, Class Action Work and Intellectual Property being on the high end of costs paid.
The average costs for most attorneys for a fully rated policy is between $1200 to $2500 per year assuming minimal limits. Attorneys that practice in the higher risk areas can expect to pay between $3000 to $10,000 per year. All of this can also vary by state and location in the state based on the carriers past claims experience in that state.
For most attorneys this cost is small versus the risk to one’s assets. For Lawyers Malpractice Insurance is Sleep Insurance.