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What Are The Costs Of A Legal Malpractice Claim Without Insurance?

For attorneys, having the right malpractice insurance is essential to protecting yourself and your business from the risks associated with legal malpractice claims. But how much can a legal malpractice claim cost you if you don’t have professional liability insurance? This post will take an in-depth look at the costs of such a claim and what you should do if you face one without insurance.

How Much Is A Legal Malpractice Claim Worth In Wisconsin?

The average claim cost is $160,000, but the median price of a malpractice claim is much higher at $237,500. Keep in mind that these are only averages. Settlements for legal malpractice can meet or even exceed the range of $1,000,000. With hundreds of thousands and your reputation at stake, it’s vital to be insured against these types of settlements and claims.

How Are Legal Malpractice Claim Costs Calculated?

There are a few different ways to calculate the cost of a legal malpractice claim, and thus, the cost of legal malpractice insurance. The first way is to look at the total amount of damages awarded in the case, including economic and non-economic damages. Economic (monetary) damages are things like lost wages or medical bills. Non-economic damages are things like pain and suffering or emotional distress.

The second way to calculate the cost of a legal malpractice claim is to look at the attorney’s fees incurred in defending against the claim, including the fees charged by the attorney and any expert witnesses used.

The third way to calculate the cost of a legal malpractice claim is to consider how much it costs to settle the claim out of court, including the attorney’s fees and any other incurred settlement costs like a mediator or court costs.

The fourth way to calculate the cost of a legal malpractice claim is to look at how much it would have cost to defend against the claim if it had gone to trial, including both attorneys’ fees.

The Bottom Line: Legal Malpractice Insurance Is A Necessary Investment

In conclusion, the costs of a legal malpractice claim without insurance can vary greatly depending on the complexity and severity of the case. Therefore, it is beneficial for attorneys to consider investing in malpractice insurance to avoid costly financial losses due to potential claims from clients or third parties.

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What Are The Costs Of A Legal Malpractice Claim Without Insurance?

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