Lawyers Professional Liability
The possibility of a malpractice claim frightens all professionals but law firms more than any practice are intimately aware of the resulting costs and damage that litigation can cause. While the legal profession may not always be described as particularly innovative, there have been plenty of trends and innovation surrounding the legal industry, creating new opportunities for malpractice claims. For commercial and corporate lawyers, the protection of clients’ IP in an unsecure cyber environment has been a recurring concern which may require a combined E&O and cyber program, as utilization of a cloud provider is often not a viable solution. The demand for experienced e-forensics/discovery and litigation crowdfunding are two big examples of emerging, technology born practices that create an increased level of risk. On a more basic level the industry seems to have seen a big uptick in conflict of interest claims for hourly billing practices. In order to maximize profits, law firms are also expanding into new practice areas which creates additional exposures. Any law firm operating in any of these environments is likely already aware of these emerging risks but they help to emphasize the importance of partnering with broker that is following your industry and the importance of creating a tailored, comprehensive insurance program, as E&O policies can differ greatly in both coverage and terms.