People make mistakes. However, some mistakes end up being too expensive on the victim. Attorney malpractice is one such case. During the course of handling your case, the attorneys could mishandle your personal details, cause monetary loss, violate rules, play fraud or breach their contract. Since you are on the receiving end of these mistakes, you can sue the lawyer. In such cases, the lawyer pays compensation for the loss with the help of his professional liability insurance. Attorney malpractice insurance covers liability cases for lawyers in California.
Like every other insurance policy, attorney malpractice insurance also offers different extents of coverage. Lawyers can choose the following kinds of coverage. Unlike other insurance policies, attorney malpractice insurance does not have a standard form or terms. Policies are customized as per the requirements of the attorney and differ from one company to another.
Here are some kinds of the coverage provided by this insurance.
* DTPA Coverage: DTPA stands for Deceptive Trade Practices Acts. This could be a very important cover for attorneys as it covers misrepresentations by the lawyer. There are different kinds of DTPA damages and not all insurers cover all damages. So, the applicant needs to be sure of what elements are covered and what are not.
* Electronic media coverage: EMC covers misdirection, leaks or loss of data caused through the electronic media. It could include different electronic media such as extranet, internet, intranet or other media. However, damage sustained due to loss of information resulting from virus attacks on computers in the law firm is covered under another coverage called cyber liability.
* Innocent partner protection: If the law firm is a partnership company and one of the lawyers does fraud, the other innocent partner is protected by the insurance policy. No insurance policy provides coverage to a lawyer who intentionally participates in criminal, fraudulent and dishonest activities. However, the policy does protect the innocent partner
* Cyber liability coverage: Cyber liability coverage provides cover for loss incurred due to breach of the company’s databases. Such breaches can result in severe damage because of loss of confidential information
* Loss of earnings: When a client slaps a lawsuit, the attorney has to defend himself. During the course of legal proceedings, the lawyer has to trim down his business work and so, he suffers some amount of income loss. The loss of income coverage covers for this earning deficit.
These are just some of the coverage plans provided by the attorney malpractice insurance in California. A lawyer can select the coverage he requires and buy the policy accordingly.
When you hire a lawyer for your requirements, professional liability insurance is one aspect that you should check. Moreover, professional liability insurance is mandatory for different professions, including attorneys. In case you suffer losses because of the lawyer’s mistake, you will be compensated for the troubles without too much of a hassle.