Supplementary Coverages to Consider
While a CPP is a great foundation of protection for the average law firm, the unique risks involved with working as a lawyer merit consideration for a few extra coverages.
Above everything else, Malpractice Insurance is especially important for lawyers. Whether you are a new lawyer just getting your start, or a seasoned partner of a large firm, everyone makes mistakes.
Malpractice coverage is designed with that in mind, protecting a lawyer against the legal costs of substantive errors, administrative errors, client errors, and negligence. Interestingly, the American Bar Association estimates a seasoned lawyer is around 1000% more likely to face a malpractice claim than a lawyer that’s been in practice for 5 years or less.
At the end of the day, the risk of a malpractice claim is ever-present for all lawyers and should definitely be considered as a part of any law firm insurance policy design.
Depending on the unique circumstances of your practice, you may also want to consider:
Employment Practices Liability (EPLI)
EPLI is designed to cover the cost of legal judgments related to hiring, termination, sexual harassment, and discrimination against employees.
Workers’ Compensation Coverage
If you have employees, you probably need workers’ compensation insurance. This coverage can protect an electrician from legal damages an employee might seek for workplace injuries. It can also cover the cost of medical bills, wage replacement, and more for an injured employee.
Cyber Liability Coverage
Like E&O, cyber liability insurance is especially important if you work installing or servicing security systems. This coverage also protects you against data loss and covers costs related to restoration, legal liability, and extortion resulting from a data breach or a cyber-attack compromising the personal or financial information of your customers.
Directors and Officers (D&O) Insurance
D&O coverage focuses on protecting a law firm from financial damages incurred as a result of mismanagement. Specifically, D&O insurance for a law firm can help cover costs related to negligent acquisitions, tortious interferences, and poorly-made lateral hires.
This is extended coverage that protects you beyond the general aggregate limits of your standard policy.
It’s important to note that this list is far from exhaustive.
Rather, it’s here to help serve as a guideline for figuring out the coverages that make sense to you for your business. Depending on your unique circumstances, some of the coverages on this list may not make sense for you to carry, while others not listed may.
Tomins Lawyer Insurance Experts are standing by, to answer any questions you might have.
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