Imagine driving on the road in a state where automobile insurance is not required. Would you feel safe? Of course not. Mandatory automobile insurance laws protect citizens in case of an accident. Because, accidents will happen.
But, what about your lawyer? Does he or she carry insurance in case an accident happens?
This week, United States District Court for the Eastern District of Pennsylvania had to order a lawyer’s insurance company to cover the legal malpractice claim of a client. Even though the insurance company had provided the lawyer with legal malpractice insurance, the insurance company tried to dispute its obligation to cover a client’s claim when the lawyer negligently handled her medical malpractice case. Fortunately, the court ordered the insurance company to honor the terms of the legal malpractice insurance policy it sold.
However, did you know that, in most states, lawyers are not even required to carry legal malpractice insurance?
Everyone, including professionals, can make a mistake. Mistakes by lawyers can be very costly to their client. The time to find out if your lawyer is insured or not is when you hire them, and not after you discover they made a costly mistake.
Be a smart consumer. Before you hire a lawyer, ask the questions: Are you insured? If so, why by what company and to what extent? What is the lawyer’s self-insured retention amount (i.e., their uninsured deductible)? Lawyers are professionals, and professionals appreciate a client’s legitimate insurance concerns. If a lawyer does not have insurance, or is reluctant to disclose what insurance they have, it’s time to find a different professional!
Hire lawyers who protect their clients with adequate insurance.
