According to the American Bar Association (ABA), four out of five lawyers will be sued for malpractice at least once. And 70% of malpractice lawsuits are filed against firms with between one and five lawyers. Even the best lawyers make mistakes, but not all mistakes made by attorneys qualify as legal negligence. According to the American Bar Association (ABA), 4 out of 5 lawyers will be sued for malpractice in their legal career.
Real estate attorneys are more likely to be sued, as it is one of the most common practice areas. The United States Bar Association reports that four out of five lawyers will be sued for malpractice at some point in their careers. Seventy percent of malpractice lawsuits are filed against small firms of one to five attorneys. If you represent plaintiffs in this practice area, you'll be reassured to know that negligence lawsuits originated by clients in the area of personal injury and property damage are generally not as costly to resolve as others.
However, you should also keep in mind that the number of lawsuits filed against lawyers in this area has historically been the highest. Nearly 30% of our claims over the past decade have been filed by attorneys in this AOP. If you represent clients in this AOP, your need for professional liability insurance is one of the highest in the industry. In terms of damaging an attorney's reputation, requiring additional work hours, and incurring costly defense expenses, there are few things more overwhelming than being sued for legal negligence.
But it's also crucial that lawyers remember to protect themselves by taking a proactive approach to risk management. In addition to properly searching, attorneys can mitigate this risk by advising clients to purchase title insurance to cover losses that result from a questionable title. While lawsuits for legal negligence often involve an error made by an attorney, even the perception of a potential error can put attorneys at risk of being sued. While that is to be expected to be the case, the reality is that most attorneys will face a negligence lawsuit at some point in their careers.
For example, if an attorney fails to file documents on time, communicates poorly, or violates client confidentiality, he may be liable for legal negligence. That's why all attorneys and law firms need professional negligence insurance to protect themselves from having to cover the costs associated with a claim. Learn what negligence insurance is, its importance to lawyers, the details of coverage, and how it protects lawyers from claims and lawsuits. While the average cost of resolving negligence claims for attorneys practicing in the area of family law is relatively low, the frequency of claims has increased in recent years.
Legal malpractice insurance, also known as professional liability insurance for attorneys, covers both a law firm and individual attorneys, so you won't have to worry about the defense costs of a negligence lawsuit or the damages your practice may be required to pay. According to the ABA study, only 1.0 to 2.6 percent of attorneys each year face a claim or lawsuit for legal negligence. The consequences of “ignoring the term” for an attorney practicing without professional liability insurance can be devastating. Legal negligence lawsuits arise when an attorney is alleged to have failed to perform his or her duties in accordance with those standards of professional and ethical conduct.
The good news is that malpractice insurance protects attorneys in the event of a negligence lawsuit by covering the costs of legal representation and any potential damages. When issuing an opinion on the property title, the attorney must act with due diligence and contact the client if the title contains deeds, judgments, unpaid taxes, or any claim about the faulty property.
