Insurance Those who operate within the legal profession are well aware of the risks and exposures associated with their jobs. Clients unhappy with the outcome of a lawsuit will generally blame their lawyer for failing to provide adequate counsel in some manner or another. There are also two well-known facts: claims against lawyers tend to increase in an economic downturn, and smaller firms (those employing fewer than five attorneys) are extremely vulnerable to legal malpractice and other damaging lawsuits. The best defense against these types of situations is to equip the firm with substantial errors and omissions insurance, specifically designed to protect those serving in the legal field. The key is to find a qualified insurance advisor that offers a professional liability insurance program tailored to meet the needs of small law firms in particular. What is E&O insurance? Errors and omissions (E&O) insurance for lawyers covers a company, or an individual, in the event that a client holds them responsible for a service they provided, or failed to provide, that did not have the expected or promised results. For doctors, dentists, chiropractors, etc., it is often called malpractice insurance. For lawyers, accountants, architects or engineers, it is usually referred to as professional liability. Whatever the name, it covers a company and its employees for errors made or that a client may perceive were made. Most E&O policies cover judgments, settlements and defense costs. Even if the allegations are found to be groundless, thousands of dollars may be needed to defend the lawsuit. They can bankrupt a smaller company or individual and have a lasting effect on the bottom line of larger companies. According to the American Bar Association, over 70% of professional liability claims are waged against mostly smaller firms. This is due in large part to the fact that solo practitioners and small firms have fewer resources at their fingertips and therefore will appreciate having insurance protection that speaks to their needs when a lawsuit arises. A good professional liability policy will contain a full range of benefits including some or all of the following: Defense expense options Subpoena assistance It is prudent to have the vital protection that errors and omissions insurance for lawyers provides to those who are important to the success of the firm for which they work. About the Author: 相关的主题文章: