What does legal services professional liability insurance cover?
Legal services Professional Liability Insurance offers coverage for your legal expenses in the event you’re sued by a client or third party for financial damages resulting from your business services. Your coverage includes your legal defense costs as well as any settlement or judgement awards up to your policy limit.
EasyCover offers three levels of coverage:
- $1 million
- $2 million
- $3 million
This is the maximum amount that will be paid out for all claims over the 12-month policy period. The level of coverage you need depends on your industry, clients, value of your contracts, and potential costs of litigation
You will be responsible for a portion of your coverage, called a deductible. You pay a deductible for each covered claim. Your deductible will generally range from $250 to $1,500 and is determined by your revenue. For example, if you have two covered claims in one policy period, and your deductible is $500, you would pay $1,000 in deductible costs and your insurance would cover the rest of your litigation costs (up to your policy limits).
Professional Liability Insurance for legal services does not cover criminal acts or deliberate misrepresentation, fraud or dishonesty. It also won’t cover third party bodily injury or property damage claims – these types of claims fall under General Liability Insurance. You must inform your insurer as soon as possible of any incidents that may lead to a potential lawsuit.