Unfortunately, most lawyers will face a malpractice claim at some point in their careers. The severity of legal malpractice claims continues to rise across various practice areas. No lawyer is immune from the possibility of a claim (whether legitimate or not), so legal malpractice insurance is critical to every practitioner’s peace of mind and financial security. But do you have to have insurance, and will it apply in other states?
Is Legal Malpractice Insurance A Requirement for Attorneys In Wisconsin?
Wisconsin lawyers are not required to purchase professional liability insurance. However, securing coverage is undoubtedly a best practice for any lawyer.
Does Legal Malpractice Insurance Apply If You Practice In Another State?
Whether your insurance will apply across state lines depends on your professional liability insurance carrier. Most carriers are jurisdiction-specific. Accordingly, you need to find a legal malpractice insurer authorized to provide coverage against claims in your state and any other states where you are licensed and intend to practice.
Why Should You Have Legal Malpractice Insurance?
Practicing without insurance coverage is risky. It jeopardizes the financial viability of your firm as a claim could quickly decimate your firm’s resources, even if you successfully defend the claim. But at what cost?
Many factors contribute to the price of professional liability insurance for lawyers. Your areas of practice are the starting point for developing a quote. Insurers will assess the severity of potential claims and then calculate the cost of your premium by considering the potential number of claims you may receive. They will also consider your claims history and the size of your firm. The benefits of carrying sufficient legal malpractice insurance certainly outweigh the cost.
How Much Insurance Do I Need?
This answer is different for every lawyer. The potential damages and defense costs the insurer must consider are primarily dictated by the number and types of cases a firm handles. You should also consider the extent of your business and personal assets, which are potentially subject to collection if you are found liable for malpractice and a judgment is entered against you.
Your potential insurance carrier will discuss the appropriate limits you may require for a given policy period. Also, remember that most legal malpractice policies “deplete,” meaning that the legal fees and costs incurred for your defense are paid from the limit available for the claim. Accordingly, if you carry minimum limits (such as only $100,000), you may not have enough coverage for your defense and to satisfy a potential unfavorable judgment.
Contact WILMIC Today
Wisconsin Lawyers Mutual Insurance Company was created by Wisconsin lawyers in 1986 to protect the financial security of lawyers like them. Thousands of lawyers depend on WILMIC for the quality legal malpractice coverage for which we are known. Offering superior claims administration, helpful risk management resources, and prompt customer service, you will not find a better professional liability insurance carrier in Wisconsin.
Contact us online or by phone at (800) 373-3839 if you have questions about securing legal malpractice coverage. Get started with an application today.