Lawyers work closely with their clients, gathering very personal details with which they build cases upon in preparation for trials. This puts lawyers and law firms at a unique risk for loss or corruption of sensitive information and legal records. Errors and omissions insurance (E&O), also known as legal liability insurance, is designed to protect legal professionals from this risk and from litigation associated with data loss, negligence or failure to produce results due to negligence.
Some risks that lawyers may be liable for include:
- Identity theft of clients
- Misplaced legal documents
- Loss or corruption of files due to hacking
- Forensic and crisis management expenses after a loss
- Failure to perform a job properly
Though these instances do not frequently occur, they do happen and they can add up to be extremely costly. E&O insurance is not required by law (though lawyers must inform clients if they carry this type of policy or not), but law firms would be wise to consider this specialized coverage for the specialized risks they face. Lawyers can best serve the public when they themselves are protected from charges of negligence or some other form of error that affected a client.
Without E&O insurance, a law firm may face financial ruin and a tarnished reputation in the event of an unfavorable legal malpractice judgment. The expenses incurred after just one incident could skyrocket well into the hundreds of thousands of dollar, possibly closing the doors of a law firm for good.
Lawyers are all too familiar with liability situations and should take steps to protect themselves from such cases as well. Policies range in price and coverage, and are offered to both law firms and individual lawyers. Contact your independent agent to learn more about E&O options to protect your livelihood and reputation from your unique workplace risks.
Do you want to learn more about protecting your law firm? Call us at 888-512-8878 for a quote on California liability insurance for lawyers.