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 two 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 affecting cost are the following:
- claims history
- areas of practice
- number of years maintaining claims-made coverage
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 are 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.
Premiums can start for as little as $300 to $500 for an attorney without coverage in low risk areas of practice but expect premiums to rise over the first 5 to 7 years. The average costs for most attorneys for a fully rated policy should be $1,200 to $2,500 per year assuming minimal limits. Attorneys that practice in the higher risk areas can expect to pay around $3,000 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.
Call us to get a lawyers malpractice insurance quote at 866.940.1101.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080