3 Reasons Your Law Firm Needs Business Insurance

Law firms are just as likely to be sued as any other type of business. While having a working understanding of legal matters might position you to better avoid or address suits, when people are upset, they tend to pursue a resolution. Having insurance for legal businesses could well save your practice one day. CoverHound can help you find the coverage you need with minimal expenditures of time, effort and capital so you can get back to practicing law on your own terms.

Clients accuse your firm of misrepresentation

The biggest concern a law firm should have in this regard is accusations of malpractice. Regardless of how good you are; there’s always a possibility you could lose a case. If your client then accuses you of some malfeasance, takes you to court and a jury agrees with them, you could be on the hook for a significant settlement. Without professional liability insurance, this could debilitate your firm’s resources, making it difficult for you to mount adequate defenses for subsequent clients—which could lead to more malpractice suits.

Depending upon the type of law in which your firm specializes, you’ll probably have to secure the services of an outside attorney who is expert in malpractice cases. Their fees, along with the ancillary expenses associated with mounting a robust defense could easily run into six figures. Professional liability insurance will give you the cushion you need to defend yourself adequately by covering many of these costs.

Property damage and injury come in many forms

General liability insurance is another category of protection you’ll need for your practice. If a client is injured in your office or if you inadvertently damage a client’s property while visiting their home or office, you’ll be glad you’re covered. If your firm has five employees or more, you’ll also be expected to provide workers’ compensation coverage to protect your staff.

You’ll also want to outfit your office and equipment with property insurance in case of a natural disaster, theft or other freak accident. After all, in this day and age, it’d be almost impossible to work without your computer system and premises in working order. Choosing a Business Owners Policy (BOP) combines general liability insurance and property coverage for convenience; you may also want to add in business interruption insurance to keep you afloat in case something disrupts your workflow and staunches your revenue. If you store client records electronically and something compromises your devices or internet connection, you’ll want cyber insurance to handle the cost of notifying affected parties and doing damage control.

Plaintiffs see deep pockets

Lawyers tend to make good money in the eyes of the general public. If you find yourself in a compromised situation, you can almost be certain the person on the other side of the table is going to come after your finances. Insurance for legal businesses will provide you a solid foundation from which you can mount a robust defense.

CoverHound can help you find the coverage you need at prices with which your firm can live. Compare personalized quotes today.