Attorney Malpractice Insurance: Why Lawyers Need It

Attorney malpractice insurance, also called legal malpractice insurance, protects lawyers against claims of professional negligence, mistakes, or ethical violations. Even the most experienced attorneys can face lawsuits from dissatisfied clients, and without coverage, the financial risks can be devastating.

What Is Attorney Malpractice Insurance?

Attorney malpractice insurance is a specialized form of professional liability insurance for lawyers. It covers defense costs, settlements, and judgments if a client claims that an attorney’s mistake, oversight, or failure to act caused financial harm.

This insurance is not just for large firms—solo practitioners and small practices are often more vulnerable, as one lawsuit could threaten their entire practice.

Why Is It Important for Lawyers?

• Protection from costly lawsuits – Legal fees, settlements, and court costs can easily reach hundreds of thousands of dollars.

• Safeguards reputation – Coverage helps attorneys handle claims without draining firm resources.

• Compliance – Some states and bar associations strongly recommend or require attorneys to carry malpractice coverage.

• Client confidence – Clients are more likely to trust attorneys who are insured, knowing they are protected if something goes wrong.

What Does It Cover?

Attorney malpractice insurance typically includes:

• Errors and omissions – Mistakes in filings, contracts, or advice.

• Missed deadlines – Failure to file within statutes of limitation.

• Conflict of interest – Claims related to ethical oversights.

• Negligence – Failure to provide adequate legal representation.

What Does It Not Cover?

While broad, attorney malpractice insurance usually does not cover:

• Intentional or fraudulent acts

• Criminal activity

• Personal injury unrelated to legal services

• Employment-related disputes within the firm

How Much Does Attorney Malpractice Insurance Cost?

The cost depends on:

• Location and state requirements

• Practice size and specialty

• Claims history

• Coverage limits and deductibles

On average, solo attorneys may pay $1,000 to $5,000 annually, while larger firms may face higher premiums based on risk exposure.

FAQs About Attorney Malpractice Insurance

1. Do all lawyers need malpractice insurance?
Yes. Any lawyer, regardless of specialty or firm size, can face malpractice claims.

2. Is malpractice insurance mandatory for attorneys?
Some states require disclosure of insurance status to clients, and a few mandate coverage. Even when not required, it’s highly recommended.

3. Does malpractice insurance cover disciplinary actions?
Most policies do not, but some insurers offer add-on coverage for bar complaints and disciplinary proceedings.

4. Can past mistakes be covered?
Yes, if you purchase prior acts coverage, which protects against claims arising from work done before the policy’s start date.

Attorney malpractice insurance is essential protection for lawyers. It safeguards your career, finances, and reputation, ensuring that one mistake doesn’t end your practice. Whether you’re a solo attorney or part of a large firm, the right coverage offers peace of mind and client confidence.

With over 30 years of expertise, we compare nearly 100 carriers to secure the best coverage at the best price. Fill out the form below to get your personalized quote today. Start now and see your options instantly. It’s fast, secure, and tailored to you.