The conduct of a professional can have major implications for their clients. When people turn to educated specialists, like attorneys, they typically need help handling a specific matter. They expect that the licensed professional they hire can help them navigate a complex matter successfully and obtain the best possible outcome.
Most of the time, attorneys do everything they can to educate their clients and advocate for them during a complex legal matter. However, lawyers can make mistakes or commit acts of negligence that have major implications for their clients. In some cases, compensation may be available through a lawyer’s professional liability insurance policy.
What do those dealing with the fallout of questionable legal support need to know about professional liability or malpractice insurance for lawyers?
Not all lawyers have coverage
State law and professional rules in California do not make professional liability insurance mandatory for all attorneys. Instead, current policies reinforce how important malpractice insurance is.
Lawyers who forgo malpractice insurance should provide their clients with a written notice that they do not carry a policy. In scenarios where an attorney lacks professional liability insurance, the only form of recourse available to frustrated clients might be a lawsuit.
Insurance providers want to limit losses
Professional liability insurance policies can provide two forms of protection for attorneys. The policy can help cover the cost of their outside legal representation when responding to allegations or lawsuits brought by frustrated clients.
The policy can also reimburse the clients for certain losses. If the client pursues a successful legal malpractice lawsuit against the lawyer, the policy could provide the compensation awarded by the courts. Frequently, insurance providers attempt to settle outside of court whenever possible to control costs. They may employ very aggressive negotiation tactics.
In scenarios involving compensation awarded by the courts, the insurance company only pays up to the policy limits. Regardless of how much the attorney may need to pay their clients in compensation, the policy only covers a certain amount based on the coverage the lawyer obtained.
Clients who believe they experienced legal malpractice may need help reviewing policy information and exploring their options. With the right assistance, those harmed by legal malpractice may be able to hold an attorney accountable through litigation and receive compensation from their malpractice insurance policy.