The Top Things to Know About Malpractice Insurance When Starting a Law Firm

Malpractice insurance for Austin law firms is a type of insurance coverage that protects an attorney who is being sued for negligence by a client. Negligence can cover almost anything that a client feels cost him or her money. Before getting malpractice insurance, there are a few things that you should understand.

Do I Need It?

If you practice law, you are at risk of being sued. It is really that simple, so you do need insurance regardless of how well you do your job. Just an accusation starts a process that can be costly, so you must have coverage to protect yourself.

What Does It Cover?

Malpractice insurance coverage will depend on the specifics of your policy. Generally, speaking, though, it covers defense costs and damages you may be ordered to pay. It works like any other insurance in that you must pay a deductible first, and then it will pay out up to your coverage limit.

What Options Are Available?

Since there is no one standard insurance policy, you will have choices for different options. You’ll need to decide how much coverage you need and the deductible. You also need to decide upon when coverage will begin. This is often the date the firm was formed, so that any claim made is covered. Some additional options include coverage for claims filed anywhere in the world, subpoena costs, bar issues and lost wages.

Getting malpractice insurance for Austin law firms is a smart decision. It is something worth considering once you have reviewed your options and understand the main points of coverage.

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