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The 2018 annual Ames & Gough survey used data provided by nine leading attorney malpractice companies that write approximately 80% of the attorney malpractice sold to law firms.
The key findings of the survey were:
1. Conflicts of Interest was leading cause of malpractice claims because of inadequate controls
2. Defense Costs continue their rise caused by e-discovery and rising defense attorneys fees
3. While Claim Frequency remains steady Claim Severity increased because of defense costs, complex litigation, and longer Tail (Extended Reporting Period or ERP) claims. Many of the claims had reserves over $500,000 with some payouts exceeding $50 million.
4. Cyber/Data Breach claim frequency flattened as a legal malpractice claim. This was due in large part to more law firms obtaining standalone Cyber Insurance Coverage rather than trying to find coverage under their malpractice policies.
5. Business Transactions, Corporate and Securities, Commercial Real Estate, and Trusts & Estates were the leading practice areas for malpractice claims
For more information concerning the findings of this survey
Click LPL 2018 Malpractice Claims Survey