When clients feel as though a law firm has poorly represented their case, they may decide to file a claim against the firm. The costs accumulated over the course of a lawsuit can be financially devastating. With the help provided by attorney professional liability insurance, though, the firm will not need to pay the full extent of these costs.
What Liability Insurance Does for a Company
As a type of errors and omissions insurance, attorney professional liability insurance can help pay any defense or settlement costs that are accrued over the course of a lawsuit. A firm could possibly owe thousands of dollars to a particular client, and paying this amount may lead to its financial ruin. An insurance policy will protect the firm in the event that a lawsuit arises.
Why Firms Need to Have Liability Insurance
Law firms deal with clients on a regular basis, which can be a highly tricky process. It is impossible to know what might upset clients, and they could decide to file a claim at any time. Therefore, it would be beneficial for a firm to obtain a policy rather than remain vulnerable to potentially dangerous scenarios.
All firms should realize the importance of having attorney professional liability insurance. It offers invaluable protection and ensures that a lawsuit will not inflict extensive damage on a firm’s financial assets.