Protect Your Law Firm with E&O Insurance for Attorneys

Due to the nature of the job, attorneys are particularly vulnerable to claims of negligence or failure to perform promised duties. Nationally, nearly 60,000 allegations of liability will be made against lawyers this year–and the numbers are only trending upward. As professionals in the business of giving advice and providing services to clients, lawyers require the protection of an errors and omissions (E&O) policy, also known as attorney professional liability insurance.

What Does E&O Cover?

E&O insurance is designed to protect an attorney, his staff and his firm from claims of negligence (errors) and failure to perform promised duties (omissions). Such protection is not included in a general liability policy.

An attorney professional liability insurance policy typically pays for legal defense, court costs and awarded damages, up to the limits of the specific plan. Fraudulent, malicious and criminal acts are not covered by E&O insurance.

Common Scenarios

Many clients, such as banks and other lending institutions, require that a firm carry a minimal amount of E&O coverage and will not engage an attorney’s services without proof of insurance. Most often, it is an honest administrative error that leads to claims of liability. Common areas of an attorney’s practice that are particular exposed to such risks include:

  • Title agent or title agency services
  • Notarization services
  • Actions as a trustee or executor of estate

Attorney professional liability insurance is a no-brainer for any size law firm. Don’t risk the financial health of your practice, consult an experienced insurance agent today.

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Finding the Right Insurance Coverage for Attorneys

When it comes to finding the right attorney professional liability insurance for your firm, it is a good idea to know some basics about your risks and your options. This can help you find the right agency to work with to design the coverage you need.

Your Risks

The risks you face for liability include errors and omissions cases. These are usually civil court cases focusing on possible negligence in the advice given to your clients. The more clients you handle, the higher your risks are likely to be. The same goes for the number of attorneys in your firm. An insurance agency can sit down with you to go over your risks and ways to minimize them.

Your Options

Your options for insurance coverage will start with the companies in your area which offer professional liability for the size of law firm you have. You can then narrow down your options to the ones with the best reputations, plans and rates to find the right fit.

Attorney professional liability insurance can be found through a few companies designed to cover errors and omissions damages. To find the right coverage, you will first want to determine your risks and your options. Some providers will help you go over these things to build the best package for your firm.

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