Some refer to the United States as a "Sue Happy" culture. When someone can win millions of dollars due to placing "hot coffee" between their legs in a sports car, the rewards can be quite lucrative. Here is the average cost of legal malpractice insurance.
"What does legal malpractice insurance cover?"
Legal malpractice insurance will cover legal fees and fines for an attorney who is found guilty of malpractice. It is very easy to file lawsuits nowadays with contingency fees lowering the risks of loss. Even the best attorney may face a legal malpractice suit at one time or another.
An attorney would be wise to protect all that he has built up with good insurance. No one can predict the mood of an angry jury. One bad decision could destroy a legal partnership if the firm does not have good insurance.
A malpractice suit could be filed if you miss a deadline, don't show up for court or do not know a certain law. Different types of legal specialties will have their own rules and risks. Family, real estate and personal injury lawyers tend to have higher average costs for their legal malpractice insurance.
"Costs Depend on the State"
Certain states have a higher standard of living. If an attorney purchases legal malpractice insurance in California, New York or Texas, it may be more expensive. Legal judgements may tend to be more expensive in these wealthier locations.
An average cost for legal malpractice insurance could range from about $6,000 to $9,000 per year. Like all insurance rates, this can be adjusted up or down based on the firm's reputation and deductible level. A brand new lawyer is likely to pay a higher insurance bill then a seasoned veteran. A larger nationwide firm with numerous clients also might pay more.
A longer period of time for the legal malpractice insurance can also reduce the expense. Once a law firm has developed a relationship with an insurance company, the rates may be lowered over time. Legal malpractice insurance is an element of risk management. The ideal scenario is that the more successful a legal firm becomes, the better their legal malpractice insurance coverage could be.