Individuals and organizations of various sizes look to law firms to protect their interests. Law firms are staffed by attorneys, paralegals, and other professionals who are experts on the law as it relates to various business interests. The legal guidance offered to clients can have major consequences, sometimes leading to negative outcomes. Insurance products help legal businesses manage their operational risks. Here’s why policies for professional liability for large law firms are necessary.
Examining Professional Liability
Professional liability coverage is sometimes referred to as errors and omissions or E&O insurance. It can cover claims and lawsuits from a client as a result of a negative outcome related to a law firm’s work product. Consider the following scenarios:
- Inaccurate or outdated legal advice
- Clerical mistakes or oversights
- Failure to address the client’s legal needs
- Failure to protect client’s interests due to conflict of interest
Without professional liability coverage, a law firm may be exposed to financial harm or in some cases, ruin.
Covering Every Detail
Law firms understand the need to insulate their organizations from operational risks. When an organization has been entrusted to handle legal affairs, a simple oversight can have far-reaching consequences. Make sure your business is fully insured for general and industry-specific risks.
