DavidWhether you’re a lawyer or someone associated with a law firm, you understand how essential it is to protect yourself and your business. Part of that includes carrying malpractice insurance. While you may be a bit apprehensive about paying the cost of coverage, staying current with your malpractice insurance premiums can save lawyers money in the long run.
1. Protection for Assets
As an attorney, if you fail to meet the standards of one of your clients, there’s always a chance that they will file a malpractice suit against you. In those cases, everything you own, personally and for the business, is at risk of being taken away. That might include savings accounts, equipment, investments, or real estate. However, by carrying malpractice insurance, you’re covered. The insurance premiums you pay will help ensure that the carrier you’ve partnered with covers whatever the client is awarded.
2. Coverage for Defense Costs
In the same realm of being sued by a client, you must consider the costs of going to court. Depending on the case, you could find an increasing pile of bills associated with going to trial. It’s another way that malpractice insurance can save you money as a lawyer, though, because the insurance provider ultimately picks up those costs again. so if you’re found guilty of negligence and forced to pay a settlement or judgment, you can rest assured that your firm won’t go bankrupt paying it.
3. Clients, Profitability, and Peace of Mind
Most individuals seeking the assistance of an attorney check to make sure the firm is covered with malpractice insurance. Chances are, if you’re not, the potential client will move on and work with a lawyer with the added protection layer. While this doesn’t exactly save money, it can help to provide you with a more steady flow of revenue, with clients selecting you more frequently.
In addition to making your clients feel more comfortable, you will have peace of mind knowing that you’re protected in the event someone tries to come after you for negligence. Thinking about how quickly you could lose everything you’ve worked so hard for can be overwhelming. With malpractice insurance, you can focus more clearly on the cases you’re dealing with instead of worrying about what could go wrong.
4. Support for Risk Management
Finally, you will get support for risk management through your malpractice insurance. Many policies will cover things like continued education to prevent problems with malpractice situations, legal advice hotlines, and other management resources for your practice. By taking the proper precautions and preventative steps, you are more likely to know what is necessary to avoid any unfortunate situations with former clients. Minimizing the risk from the start will save you money by avoiding the entire situation.
Before you skip over the purchase of malpractice insurance for your law practice, understand that it’s an investment that will save you money in a plethora of situations. Whether covering your assets or defense costs, gaining more clients to boost profitability, or getting support for risk management, it’s an expense worth carrying for your company. There are plenty of options out there, so make sure to do your research before settling on the right insurance carrier for your needs.