Question 1

1. What is lawyer’s professional indemnity insurance?

Accepted Answer

Lawyer’s professional indemnity insurance provides protection against litigation related to errors and omissions, negligence or failure to deliver the service agreed upon. It safeguards the lawyer’s interest.

The premium rate are determined on the basis of:

Question 2

2. Who should take lawyer’s professional indemnity insurance?

Accepted Answer

Lawyer’s professional indemnity insurance can be taken by lawyer, notary, legal consultant and law firm from various specialization or field of their expertise across India and abroad.

Question 3

3.  How the premium rate determined of a lawyer’s indemnity insurance scheme?

Accepted Answer

• The area of lawyer’s practice (general corporate, tax related, venture capital, etc) or risk group of the practitioner
 • The size of the law firm or the number of lawyers, legal assistants and other staff employed with the firm.
 • Past claim settlement
 • Limit of indemnity etc

Question 4

4. What is the duration of the policy?

Accepted Answer

The duration of lawyer indemnity insurance scheme is typically 1 year, after which the policy can be renewed to avail protection against liabilities.

Question 5

5. When should the insured party prepare to lodge a claim?

Accepted Answer

As soon as the insured gets a legal notice or learns about a legal negligence, error or omission in the service provided, the insured must start preparing to file for a claim settlement and inform the insurance company within the specified time limit.

Question 6

6. Four Situations When Lawyers Professional LiabilityInsurance is Needed

Accepted Answer

A case was filed against the lawyer in Bihar who sued popular Hindu God Ram for leaving his wife, Sita. Though the court rejected the lawyer’s plea; many other lawyers had filed a case against that lawyer for hurting the religious sentiments. The purpose of highlighting this case is to make you understand that even lawyers have to face a legal battle. Even lawyers have to hire lawyers sometime! In fact, the legal profession is rife with different types of legal risks, and many such situations may arise when a lawyer is sued. Though one can act prudently while discharging professional duties; mistakes can still arise. What if you have been sued by the client for profession error and negligence? Even if the verdict were given in your favor, you would have to incur expenses in defending yourself in the court. The situation can turn awry if you lose the case and have to pay compensation. To combat your financial losses, it is strongly advised to go with the lawyers’ professional liability insurance to get financial coverage in case of unfortunate situations.
To understand the importance of lawyers’ professional liability insurance, let’s have a look at those situations when a lawyer can get sued:
1. Claims of Negligence
It’s not uncommon for clients to feel that they have been betrayed or cheated by their lawyer, especially when they don’t win the case. In this case, a client can sue the lawyer if he/she feels that there is negligence on their part.

2. Breach of Confidentiality
The relation of a client and lawyer depends on the trust and confidentiality. But what if, you unintentionally disclose the facts about your client to the third-party? If your client suffers any monetary loss due to this, you can be sued.

3. Administrative Errors
Lost documents, paperwork, errors and other administrative issues are common reasons for which a lawyer could be sued.

4. Missing Filling Deadlines
What if you miss the deadline for filing the document in the court? Or, what if you forget the hearing date and do not appear in the court? A lawyer can be sued if he missed the deadline for filing the case.

As a lawyer, notary or legal consultant, you are subject to a myriad of risks. You are liable to settle clients arising from errors & omissions. Here lawyers’ professional liability insurance can help you as the policy has been specifically tailored to suit the individual needs of your profession and also takes care of the mandatory legal obligations. As in certain cases, having lawyers’ professional liability insurance is necessary, if it involves big client or costly lawsuit. With the lawyers’ professional liability insurance, you are protected from claims arising out of professional negligence, like:
 • Errors in litigation
 • Failure to give accurate legal advice
 • Failure to meet deadlines
 • Loss of documents
 • Failure to give accurate tax advice

Question 7

7. How does lawyers’ professional liability insurance work?

Accepted Answer

For a covered professional liability claim, your insurer will cover attorney fees and court expenses. If you lose the court case, the insurer will also pay financial damages which the court has decided you owe the client. In certain situations, the insurer also agrees to pay the out-of-court-settlement. In any case, your lawyers’ professional liability insurance company will help in covering the big-ticket costs of a lawsuit

Question 8

8. Is there anything which is not covered?

Accepted Answer

While the scope of lawyers’ professional liability insurance is wide, it is not unlimited. There can be some activities which are not covered by the insurer or are simply beyond the control. Usually, these uncovered areas are called exclusions. Some of the examples of exclusions are:
 • Criminal acts
 • Dishonest acts
 • Fraudulent activities
 • Claims involving one policyholder against the other policyholder in the same legal firm
 • Claims arising from the situation where the policyholder knew or foreseen the claim at the inception of the policy, however, it failed to inform the insurer
 • While you work towards protecting the interests of your clients, it is high time to go with the lawyers’ professional liability insurance to safeguard your interests.

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