Law firms boost insurance in the face of increasing malpractice suits
Law firms are bulking up on insurance to protect themselves from litigation by former clients. Insurance and legal experts say that the recent increase in the number of malpractice suits can be explained by the economic downturn, with bankruptcy trustees seeking to recover money from the law firms that advised the companies before they failed. According to the Wall Street Journal Blog, there are even some clients that use the threat of litigation to lower their legal bills.
“We are seeing firms buying higher limits of insurance, and there are some buying up to $400 million or more,” says Dan Knise, president of Ames & Gough Insurance and Risk Management, a specialty insurance brokerage. Knise explained that the big numbers reflect the potential losses for corporate clients on big deals.
Read more at blogs.wsj.com.comments powered by Disqus