Lawyers professional liability insurance also known as Errors and Omissions (E&O) insurance policy that provides coverage for claims or lawsuits to legal professionals in the event they get sued by a client or third party as a result of damages occurring to the suffering party. When clients or third parties incur damages or losses as a result of your legal services, claims or lawsuits arise out of those situation. The plaintiff will often claim to be a victim of wrongful acts, conflict of interest, or simply a party suffering because of the law firm’s negligence, errors, or carelessness while operating their business in their area of practice.
To protect yourself from physical risk exposures, it is worth looking into general liability insurance.
To protect your business from claims in the event employees get sick or injured while working, please look into applying for workers compensation.
We recommend all lawyers and attorneys to get a minimum coverage of $1,000,000 in Ontario, Canada. Rates starting at $1,000/Year for Liability insurance coverage for lawyers.
The Importance Of Professional Liability also known as E&O Insurance
A Lawyers professional liability insurance policy is far more important than you could ever imagine. If you do not have the appropriate amount of insurance, you’re going to be taking a risk each and every time you work with someone. Ontario residents are very picky and they could easily turn on you at the drop of a hat. The good news is that you can protect your business by investing in the right insurance. Finding the right professional liability insurance broker for lawyers and attorneys is highly recommended. Professional liability insurance (PLI) coverage for attorneys can help.
With this type of insurance, you will be able to negate the risks and protect your business to the fullest. After all, you never know when someone is going to blame you for their problems. And, this could easily lead to a lawsuit and a hefty settlement. If you do not have the right insurance, you’re going to get yourself and your company into big trouble. Attorney professional errors and omissions liability insurance can make a huge difference.
With this type of insurance, you will be able to defend your company from legitimate and frivolous claims. What other insurance is needed? How much should you expect to pay? How do I apply? You’ll find out in the informative guide below.
Other Additional Policies
When it comes down to looking into business insurance for a law firm initially, getting in touch with a agent or a lawyers professional liability insurance company would be a wonderful start. However, not all policies are going to be able to protect you from every single problem that you encounter. If you sincerely want to protect your company to the fullest, you need to make sure that you’re covered completely. Working with a professional liability lawyer insurance broker can help. There are many different types of insurance that can prove to be beneficial to you and your business! Which policies should you consider adding? You’ll find out below.
Property Insurance
As an attorney, you’re going to be meeting with a lot of clients. The mass majority of these individuals will be visiting you at your offices. If something happens to your place of business, you may not be able to retain your clients. This could prove to be very problematic. With property insurance, you will be able to protect your place of business from potential problems. The insurance will protect you in many situations. If your property is damaged by a storm, the insurance will go into effect. It is best to obtain at least $500,000 worth of coverage each year.
Fraud Insurance
The sad truth of the matter is that you might not be able to trust your employees. The good news is that you might be able to protect yourself. One of the best ways to do that is by getting the right amount of fraud insurance. With fraud insurance, you will be able to protect your business in case one of your workers does something dishonest. If they abuse your customers, you can rest assured knowing that the fraud insurance will enter the picture and protect you to the fullest. Be sure to obtain at least $100,000 per claim and $1,000,000 annually.
Vehicle Insurance
Attorneys are often required to drive throughout Ontario. There is a good chance that you’re no different. Unfortunately, there is a risk that you’re going to get yourself into and automobile accident. If you cause an accident, you can guarantee that you’re going to be held responsible. The victim will come after you with an experienced lawyer. Make sure that you have enough insurance to protect yourself and your workers. While it depends on the size of your law firm, you should obtain at least $1,000,000 per claim or $2,000,000 per year.
Really, you should not hesitate to get the insurance that you need. It will prove to be well worth it, even if you’re required to spend far more in the long run. In fact, you will pay more depending on the type of commercial vehicles in your fleet. For example, if you own a fleet of trucks, your rates will be higher compared to a law firm with a fleet of small cars.
Average Cost of Lawyers Errors and Omissions Insurance Coverage
Professional Liability Insurance – As an attorney, you are required to give advice to your clients. If at any time one of your client believes the advice you provided caused them to fail in their business or resulted in a huge financial loss, you may end up facing a civil lawsuit. Professional liability insurance aka lawyers E & O Insurance is a necessity for all licensed Canadian attorneys. It is recommended to obtain at least a $1 million, which will cost you anywhere from $1000 to $5000 or more a year.
Commercial Property Insurance – If you own commercial property, you will need to obtain commercial property insurance. This coverage is a requirement for all attorneys who own property insurance in Ontario. For $150 per month, you should expect to get $100,000 per claim or a $1 million per year. This will be sufficient to cover most of your expenses in the event your property is damaged in a natural disaster or fire.
Fraud Insurance – Unfortunately, attorneys cannot trust anyone, including employees, subcontractors or co-owners. There have been reports, where business partners have stole a lot of money from the original owner. When this occurs, the original owner is responsible for any financial loss. While they can file a grievance or criminal charges against their business partner, it is highly likely that they will never recoup the money they lost. For a $1 million policy, the average rate is $30 month.
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Our quotes comes from insurance companies that are licensed across Canada to provide professional liability insurance.
Lawyer and Attorney Disability Insurance
You biggest asset in life is your earning ability. If you are unable to work, you will need to rely on either your savings or borrow money to sustain your lifestyle. When these unfortunate circumstances occur, dependents and spouses are also impacted financially and emotionally.
Disability insurance coverage will provide you a monthly income benefit, usually totaling 70% to 80% of your income, when you are unable to work for a period of time due to injury or illness.
Types of disability insurance
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
FAQ before purchasing lawyer and attorney professional liability insurance
- How much professional liability insurance do I need as a lawyer or attorney?
- How do I get a lawyer and attorney insurance policy?
- What does lawyer and attorney professional liability insurance cover?
- What is the difference between claims made & occurrence form of coverage?
- When will I need to be insured as a lawyer or attorney?
- What other professions need this type of insurance?
Other useful posts you should also read
- Canadian insurance companies that provide professional liability insurance for lawyers and attorneys
- How does the claims process work if I get sued because of my legal services?
- What is the cost of lawyer and attorney professional liability insurance?
- How do I apply for a lawyer and attorney professional liability insurance policy?
- How do I qualify for coverage as a lawyer or attorney?
- What is the purpose of getting insured as a lawyer or attorney?
- How long will it take to get an insurance quote for my lawyer or attorney business?