Do You Need Insurance When Using a Lawyer

Do You Need Insurance When Using a Lawyer


Some things happen that require an attorney to straighten them out, but you do not need to hire a lawyer in all situations. You can determine whether or not an attorney is necessary by asking yourself if you need to obtain legal advice in state or federal law. The following situations will also help you determine the answer to this question:

When You May Need a Lawyer

You need a lawyer when you are in the process of selling real estate. If you are in a dispute with someone concerning the title of a property, you need an attorney at this time too. Lastly, you need a lawyer when you are transferring property. Also, having an attorney when you are drawing up a Will or trust and performing other estate planning duties would be a good idea. 

If you are in business, you will need a lawyer for all of the matters associated with your business. This includes dissolutions, sales, purchases and incorporating.

Your family is also a reason that you may need an attorney. Before you get married, you may want to draw up a prenuptial agreement. If the marriage ends in divorce, you will need a lawyer for this purpose and to work out the child custody agreement. 

Although you are a law-abiding citizen, there are times when many people are arrested for crimes, and you will need a criminal defense attorney if this happens to you. Some common examples include an arrest on a DUI or a DWI charge. You will need an attorney if arrested on any misdemeanor or felony charge. 

If someone is injured at your place of business or your home, you will need an attorney for property damage, personal injury or Workers’ Compensation cases.

Do You Need Insurance When Using a Lawyer?

You do not need insurance before you hire an attorney, but if you are a lawyer, you will need to have professional liability insurance. This is known as “lawyers’ professional liability insurance” or legal malpractice insurance. This is very important because the client may be dissatisfied with the job you provide and want to sue you. Your malpractice insurance provides the funds to fight the lawsuit in court and also pays the judgment that the court orders for the plaintiff. 

The only state to require professional liability insurance is Oregon, but it is in your best interests to purchase it in any state. A lawsuit may only require that you make one misstep. Then, you would be responsible for paying the entire cost of your defense by yourself. The attorneys’ fees could amount to tens of thousands of dollars, and if you are ordered to pay a significant amount of money to your ex-client, you would need to pay that on your own as well. 

Professional liability insurance covers you if you misfile paperwork or miss a deadline when filing it. A client may also sue if they determine that you provided inadequate counsel or committed professional misconduct. Your client may allege that you failed to disclose any professional or personal interests, and you may be accused of breaching the attorney-client privilege.

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