- The direct costs for a law practice of a professional negligence claim can include payment of an excess, a possible increase in professional indemnity insurance premiums, and lost professional fees.
- There are also important indirect costs, including lost opportunity to spend time on profitable work and personal and professional costs.
- Increased risk awareness is the best means of avoiding these costs.
At Lawcover, one of the first questions we are often asked when a solicitor notifies us of a claim is: “How much will this cost me? How will my premiums be affected and do I have to pay my excess straight away?” The primary professional indemnity policy issued by Lawcover provides broad protection for civil liability that arises from the provision of legal services – up to $2 million for each claim. There are, however, some costs of a claim that are not covered under the policy.