What Is Legal Malpractice Insurance?
Legal malpractice insurance, also known as professional liability insurance for attorneys, provides financial protection when clients allege that your legal services caused them harm. Whether you are a solo practitioner handling estate planning matters or a partner at a mid-size litigation firm, this essential coverage shields your practice from potentially devastating claims.
Unlike general liability insurance that covers physical injuries or property damage, legal malpractice insurance specifically addresses claims arising from professional services. This includes allegations of negligence, errors in legal advice, missed deadlines, conflicts of interest, and breach of fiduciary duty. Without adequate coverage, a single malpractice claim could threaten your personal assets, your firm financial stability, and your professional reputation.
At PSL Insurance Group, we understand that every law practice is unique. That is why we work with multiple A-rated carriers to find coverage that matches your specific practice areas, firm size, and risk profile. Our policies provide both defense costs and indemnity coverage, ensuring you have comprehensive protection when you need it most.
Who Needs Legal Malpractice Coverage?
Every attorney who provides legal services to clients should carry professional liability insurance. While some states mandate coverage and many court systems require proof of insurance for certain appointments, the real question is not whether you need it but how much coverage your practice requires.
Solo practitioners often face the highest relative risk because they handle all aspects of client matters without the safety net of partner review. A single missed statute of limitations or overlooked conflict can result in a claim that exceeds your ability to pay out of pocket.
Small and mid-size firms need coverage that protects both the entity and individual attorneys. As firms grow, so does the complexity of their risk exposure, making it essential to regularly review and adjust coverage limits.
Of-counsel attorneys and contract lawyers should verify their coverage status carefully. Assumptions about being covered under another firm policy have led to costly gaps in protection.
What Does Our Coverage Include?
PSL Insurance Group policies are designed to provide robust protection against the full spectrum of professional liability risks attorneys face. Our comprehensive coverage typically includes:
- Defense Costs: Legal fees, expert witness fees, and court costs incurred in defending against malpractice claims
- Settlements and Judgments: Indemnity coverage for amounts you become legally obligated to pay
- Disciplinary Proceedings: Coverage for bar complaints and regulatory investigations
- Prior Acts Coverage: Protection for work performed before your policy inception date
- Innocent Insured Protection: Coverage continues for partners not involved in wrongful acts
We also offer optional endorsements for cyber liability, trust account protection, and extended reporting periods, allowing you to customize coverage to your firm specific needs.
