Attorneys provide valuable advice in situations with high financial and emotional stakes, which means that they face a high risk of professional liability claims. Mistakes or omissions can prove costly, and when clients believe such errors have been made, lawsuits may follow. Attorneys can guard against this risk with Lawyers Professional Liability insurance, but to enjoy even better protection, attorneys should consider a policy with First Dollar Defense.
What Is First Dollar Defense?
When a policyholder elects for First Dollar Defense, the policy deductible only applies to damages. In other words, the insurer pays the “first dollar” to cover costs associated with the initial claim, investigation, and court proceedings. In the event that a claim is dismissed or even resolved without the plaintiff being awarded damages, the policyholder is not responsible for any of the costs associated with the claim.
Why Is This Coverage Worth Adding?
Even the best Lawyers Professional Liability insurance may leave the policyholder exposed to high initial costs. Whether or not damages are awarded, attorneys lose money when they face claims, since they must take time away from their clients and billable hours to appear in court, prepare a defense, or obtain their own legal counsel. First Dollar Defense can minimize the financial losses associated with unfounded claims.
Legitimate liability claims are an inevitable risk for any professional, but unsubstantiated claims are an unnecessary risk that can be managed through First Dollar Defense coverage. Choosing this coverage can pay off significantly in the event that even one client claims professional negligence.