Law Malpractice Insurance: Coverage and Features There are several bases for malpractice against lawyers that are available which includes; negligence or legal malpractice, violations of state or federal statutes, breach of fiduciary duty, common law fraud and breach of contract and these are suits that clients and non-clients can file. Lawyers’ Malpractice Insurance policies which is also known as the Lawyers’ Professional Liability policies are not formed equally. For any legal malpractice insurance, there has no standard policy. Thus, relevant policy provisions can substantially vary from one insurance company to the other. If you compare the policies offered by the insurers, you have to be keen on the following policy provisions. Law firms use electronic media in order to conduct business. This is use to respond for any misdirected email or other media such as extranet, internet and intranet or sometimes loss of client information that was transmitted through electronic media as well as unintentional spread using the computer virus that enables a denial of service attacks using a third party computer network and or unauthorized access and for that personal injury has arisen from the use of electronic media such as social media and website.
For some insurers, they will reimburse the insured party with up to $25,000 for the cost of seeking a third party mitigate and the potential legal liability claims that may arise from any security breach that would result in the loss or theft of a confidential client information.
The DTPA is most important coverage in some jurisdictions. Any lawyers may be liable for their actions under the DTPA statutes. Lawyers who misrepresents their clients can be charged for their actions will be placed into the DTPA statutes. Remember that not all legal malpractice policies are covered by the DTPA damages and can be multiplied of treble damages. Punitive and exemplary damages is not included in the legal malpractice. A policy should be policy that provides coverage where it is permitted by the law. A fraudulent and dishonest lawyer are excluded from all policy coverage. If the lawyer is not guilty for any crimes committed, participated or even accede on such acts would greatly benefit from the coverage. Facing malpractice claims will take a lot of your time, thus this also means that you will be losing clients and revenues as well. Although some legal malpractice policies provide expense reimbursement and trial attendance coverage ranging from $500-$750 each time you are out of the office for trial, mediation, arbitration as well as deposition in defending a claim which is under these policy. There are some legal policies for malpractice allows coverage up to $25,000 or $50,000 for your defense costs that is incurred to respond to your disciplinary proceedings. It may not be subject to the deductible but it can be an additional limit. Malpractice insurance policies are not the same, it is very important for you to have knowledge while an independent agent will be able to help you obtain a competitive quotes.