While it is a good idea for all attorneys, especially small firms and solo attorneys to have lawyers’ malpractice insurance, often, attorneys seem to lack a clear understand of how malpractice insurance works and why they may need it. In fact, it is often only when problems arise that attorneys wonder about their coverage.
First, it is reasonable for any attorneys to assume that they will face a malpractice claim at some point in their careers, and the simple filing of a claim against an attorney does not mean that the attorney necessarily did anything wrong. However, responding to such a claim can be an expensive and time-consuming process, even when the attorney is in the right, and this makes malpractice insurance a good idea. It can save on the amount of time and money resulting from a claim, even a meritless one.
Second, while having a malpractice policy in place is a good first step, it is also important that an attorney report any claim against the attorney to the lawyer’s malpractice insurance company in as timely a fashion as possible. Reporting claims quickly means that they insurance company will have plenty of time to respond appropriately to the situation and that the policy holder will be able to ensure coverage for the particular claim in question.