Whether you’re a solo practitioner of law or working with partners at a firm, having legal malpractice insurance will protect you from any unfortunate situations when a claim is made against you or your firm.

Mistakes are bound to happen and lawyers are liable for the decisions they make which have a direct impact on their clients personal lives and well-being. While some states may require legal malpractice insurance for attorneys, if you’re thinking about going without, understand the the consequences of being at the losing end of a claim against you can be devastating for your career.

This article will guide you through some of the benefits, considerations and examples of policies you can get to protect your legal services.

Why Purchase Legal Malpractice Insurance?

First and foremost, purchasing malpractice insurance protects you from any liability issues that can occur while performing legal services.

The cost of malpractice insurance for attorneys can come with a high annual premium. Depending on where you practice law, the area you practice, the years of experience you have, and the size of your firm, these are all factored into the annual insurance price.

Areas of practice such as real-estate lawyers and personal injury lawyers tend to pay higher premiums because these are seen as “high-risk” fields. Also, when a city has a higher number of malpractice claims, you can be sure to experience higher rates.

While he premiums may be extreme, especially if you’re a solo-practitioner or small law firm, malpractice insurance protects your reputation and personal indemnity.

For more detailed FAQs, please see the ABA Standing Committee on Lawyers’ Professional Liability 

What to Consider When Purchasing Legal Malpractice Insurance

Legal malpractice insurance for attorneys can cover many situations while leaving you liable for claims you may not see coming. When your considering which legal malpractice insurance to purchase, here is a few things you want to have in your insurance policy:

• If you’re outsourcing or using a virtual receptionist, can your policy provide protection against outsourcing risks?
• Does the policy protect all your staff and associates?
• Will the policy give you peace of mind and confidence to practice law?
• Does the policy legitimize your practice and build client trust?
• Will you be protected against claims of professional negligence?
• Does the policy cover the expense of hiring an independent legal counsel to represent you in the case of a complaint?

Another important consideration when choosing legal malpractice insurance would be the types of coverage you can receive. Each claim can have limitations of liability ranging from a few thousand dollars up to millions.

If a claim is made against your law firm, you may want to know if you’ll receive an increase in policy charges in future years.

Rates for Legal Malpractice Insurance  

The actual rates of your legal malpractice insurance will depend upon factors listed above as well as the answers to some questions you’ll have to provide.

Here’s an example of some of the questions you’ll be asked which will be used to calculate the cost of your insurance coverage:

1. How many claims or incidents have you had per lawyer per year?
2. What was the nature of the claims (i.e. frivolous, ordinary negligence, gross negligence, criminal conduct)?
3. What was the degree of fault by the lawyer, (i.e. clear malpractice, statute of limitations, vicarious liability [when a lawyer leaves the firm])?
4. Have you been rejected from other insurance carriers or was renewal refused previous insurance provider?
5. What is the nature of your practice (i.e. family law, personal injury, etc.)
6. What was your attitude / conduct with the client in resolving claims (i.e. attitude toward client)?

Insurance companies will examine your firm carefully to determine your eligibility and insurance premium rates.

Be prepared to share some of the intimate details of your law firm or solo-practice. You’ll have to share information like your attorneys professional conduct, history of previous claims, list of attorneys, their roles, hours worked, and more. Applications will vary from insurance company to insurance company.

Insurance Company Red Flags

Some of the major factors contributing to increased insurance premiums come from the following list of “red flags” which insurance companies are looking for.

1. 2 or more claims from the past year
2. 3 or more claims from the past 10 years (depending on the size of your firm)
3. Type of claim
4. Pattern of claims
5. Being uninsured the previous 5 years
6. Not paying a deductible
7. Not cooperating with client suing
8. Any bar disciplinary incidences
9. Continued business relationship with clients that previous sued
10. Possession of other professional licenses.

Researching the Best Legal Malpractice Insurance

The list above determining the rates of your insurance policy can seem daunting, you have complete power to research and find the best policy provider for your firm.

Performing your own due diligence and criticizing the fine details of the policy will be in your best insurance. Insurance policy providers is a business and the advertisements you receive in your inbox are simply trying to sell you on their premiums while not providing you the right coverage for your firm.

 In the case that you are rejected from an insurance provider, you can make any requested changes to the practices at your firm and reapply. There are plenty of insurance companies to choose from and comparative shipping will allow you to find the best price at the best coverage.

Insurance Updates & Renewals

Once you have selected the best legal malpractice insurance for you and your attorneys, you’ll have to continue to send any information to your insurer regarding changes to your practice.

If you hire on more attorneys or take on different kinds of clients, you may have to make changes to your policy.

When your insurance policy expires, you are responsible to make any necessary updates to avoid defrauding the insurance provider which can lead to legal consequences.

If you’re a solo practitioner or small law firm you may want to reduce your workload while improving the performance of your legal services. To do this in a cost-effective way, hiring a virtual receptionist can handle many of the small tasks required to run a law firm.

Virtual receptionists are able to help with tasks like social media, marketing, administration, advertising, answering phones and more.

Here you’ll find a variety of places to find a virtual assistant for your law firm.

What is a Virtual Receptionist?

Virtual receptionists offer highly-skilled service solutions that can manage many of the tasks your in-house staff would do. They can operate remotely, in office, or completely computer automated.

The benefits of hiring a virtual receptions include::

• Cost effective
• Time savings
• Efficient
• Reduce labour costs
• Increased productivity
• Access to expert talent
• On-demand labour services

Virtual receptionists, also known as outsourcing, comes in the form of independent contractors, temporary office workers, remote workers, or

Are There Risks Using Virtual Receptionist?

While the benefits of having a virtual receptionist seem appealing, let’s take a moment to evaluate the risks of having a virtual receptionist.

Here’s some of the common risks that come with using a virtual receptionist:

• Security & Confidentiality Risks. Providing legal services can expose you to a range of sensitive, personal information from your clients. If you choose a virtual receptions to handle your incoming calls, be sure there job requirements are clear: take calls, make appointments, and schedule consultation. Keeping sensitive information and data secure is a top priority at a law firm.
• Quality Risks. Situations where quality becomes a risk include outsourcing calls to countries where language and cultural barriers exist. Potential clients may become frustrated explaining their needs to someone who is assigned simply to book appointments and set up an initial consultation.
• Reputation Risks. Virtual Receptionists is another way of saying “outsourcing.” When you’re outsourcing work to other countries, it can sometimes lead to bad publicity and it may affect other staff working in house who may worry that they’ll lose their job to a cheaper, outsourcing solution.

When deciding how you’ll use a virtual receptionist at your law firm, if the risks outweigh the benefits, you should avoid including these outsourcing solutions at your law firm.

Law Firm Virtual Receptionists

If you’re busy providing legal advice or in the middle of a consultation, having an agent answering calls can increase the likelihood of securing new clients.

Services like AnsweringLegal provide dedicated call center solutions for law firms. They offer the following services:

• Call handling
• Message taking
• Call routing
• Legal intake
• Customer support
• Polite and professional customer experience

Call center virtual receptionist can be given a professional script to handle a range of questions and types of phone calls. Other services can provide 24/7 legal answering services to reduce missed opportunities at your law firm.

Here are a few more call answering services you can consider for your law firm:

PatLive – Offers 24/7 legal answering.

• Pat Live provides virtual receptionists employed from the United States. They can help your law firm with message taking, appointment scheduling, lead collection, event scheduling, after hour agents, and more. With 27 years experience, Pat Live offer competitive virtual receptionist solutions for all business types.
• Hours of operation: 24/7 services.
• Pricing: $99 per month (50 call minutes) to $899 (1000 call minutes); provides additional features and a free 14-day trial.

Conversational – Offers friendly virtual receptionists in North America.

• Conversational is an industry leading virtual receptionist service provider. Their team of professional and friendly receptionists come from the United States and Canada. They have over 14 years experience and are one of the few with 100% North America only receptionists.
• Hours of operation: Custom operation solutions.
• Pricing: $300 per month (600 call minutes) to $1000 per month (2400 call minutes); offers a 30-day free trial.

RubyReceptionist – Offers professional virtual receptionists and a mobile app to synchronize and manage all calls effectively.

• Ruby Receptionists is a popular virtual receptionist service used by smaller law firms. They provide you with your own phone number which can be used to transfer to different lines and use detailed instructions to handle any situation coming into your office.
• Hour of Operation: 8 am to 12 am EST + 5 am to 9 pm PST (can also operate on weekends)
• Pricing: $259 per month (100 call minutes) to $989 per month (500 call minutes); includes 21 day money back guarantee.

AlertCommunications – Offers bilingual virtual receptionists and provide services exclusively for the legal industry.

• Alert Communications has been providing their services since 1965 and use a client intake call centre strategy with their virtual receptionists. Instead of taking a call and transferring it to you, these virtual receptionists can handle any call volume and turn them into prospective clients at your law firm.

  Since Alert Communications is exclusive to the legal industry, their virtual receptionists are trained to use and understand legal terminology giving you that added edge of professional at your law office.

• Hours of Operation: 24/7 services.
• Pricing: Contact a sales representative to receive a quote for your law firm; requires a 1-month upfront refundable deposit.

Answer 1 – Offer a tech based virtual receptionist that can also provide web chat, text messaging, emails and more.

• Answer 1 offers virtual receptionists for businesses of all kinds and every size. If you have a website for your law firm, their software system can be integrated to add additional intaking solutions. You don’t have to feel restricted to answering phone calls only and can include web chats and other virtual methods for prospective clients to contact your law firm.
• Hour of operation: 24/7 services.
• Pricing: $90 one-time setup fee; $239 per month (100 call minutes) to $749 per month (500 call minutes); provides a 21 day free trial.

Alternative Law Firm Solutions

Looking for more ways to make your law firm run more efficiently? Try these software solutions to reduce your workload and focus on providing quality legal services:

• Law firm accounting software
• Law firm management software 

If you want to improve the efficiency and operations of your law firm, having a good quality law firm management software can help. Whether you want to automate payments, increase security of client documents, or an easier client intake system, there are a range of management software available.

Here you can explore the features, benefits and prices of the best law firm management software available to guide you toward choosing the right system for your law firm.

Top Features of Law Practice Management Software

Not all law firm management software are the same. The following is a list of features you can find in certain software solutions.

• Accounting – Manages your payroll, accounts, billing, receivables, and creates financial reports.
• Billing and Time Tracking – Records your billable hours and transactions.
• Case Management – Provides your with a central database that can check for statute of limitations and conflicts of interest. You can use this software solution for quick searching, task management, and phone messaging.
• Customer Relation Management (CRM) – Track, store and relay e-mails and messages to clients. Create an automated messaging system to send reminders to clients and more.
• Docketing and Calendaring – Allows you to schedule appointments, meetings, court appearances, deadlines, etc., by day, week, month and year.
• Document Assembly – Creates automated templates for legal documents which can be simple letter heads to complex legal documents.
• Document Management – Connects files and links to a word processing application and your attorney website.

Benefits of Having a Law Firm Management Software

There are numerous benefits for using a law firm management software. Here are a few:

• Increased Efficiency. The tasks between lawyers and support staff can be coordinated, recorded, and managed with ease. You can set deadlines and delegate duties to staff appropriately.
• Time Saving. By linking all contacts, tasks, appointments, important dates, and notes in an easy to access format for cases and scheduling.
• Improved Organization. Instead of relying on cabinets of files and papers, you can securely store information in searchable archives. Retrieving important information about your clients and cases become quick and easy.

List of Law Firm Management Software

• Clio. Clio is an all inclusive law firm management software with many practical tools to run your law firm. Clio provides tools for invoicing, billing, calendars, time tracking, reporting, accounting, and management for cases, clients, and documents. Their Starter Plan goes for $39 per user / month.
• Bill4Time. Bill4Time is a dedicated time tracking software that allows you to track time accurately and efficiently. You can use your laptop, mobile phone, or tablet to track time with your clients and bill them accordingly. Getting started is as low as $25 per month.
• Lexicata. If you’re looking for an easier solution for client intake, Lexicata is a Customer Relationship Management software. Lexicata allows you to keep track of prospective clients, send follow up messages, and increase your chances of obtaining new clients. Pricing is customized and based upon the size of your law firm.
• MyCase. MyCase is a professional case management software that lets you manage your cases, track time, automate billing, and communicate with your clients. MyCase aims to improve efficiency between lawyers and their clients by providing an intuitive all-in-one platform to manage your law firm. MyCase is available for $39 per user / month.
• Firm Central. Developed by Thomson Reuters, Firm Central is a powerful cloud based law firm management software. They boast strong security features to give you peace of mind with your confidential client information. You can use Firm Central to manage your documents, contacts, calendar, legal research, time tracking and billing. Their pricing starts at $40 per user / month for their basic package.
• FilePro. If you’re looking for a powerful law firm management software, FilePro is packed with features to make your legal service run smoothly. With management tools for document assembly, activity based pricing, conflict checking, time tracking, trust and office accounting, and workflow processes, FilePro can be tailored to maximize your firm. FilePro offers a free trial or you can obtain a quote for your law firm.
• SmartAdvocate. If you’re looking for a state-of-the-art Plaintiff’s personal injury case management software, SmartAdvocate would be your choice. This law firm management software was designed by active, practicing, personal injury lawyers and paralegals. You can use SmartAdvocate to manage all your cases, access them anywhere through the cloud, and improves productivity at your law firm.
• Lawcus. Lawcus is a simple and legal practice management software that provides everything you need to run your law firm. From work automation to document assembly, Lawcus has a range of tools to improve the efficacy at your law firm’s office. Pricing starts at $34 per user / month.
• App4Legal. App4Legal focuses on providing your law firm with an intuitive way to track your data, manage your processes, and access your data anywhere. This law firm management software operates on a secure cloud server and starts at a very affordable price. To get started with App4Legal it’ll cost you $10 per user / month.
• Case Master Pro. Case Master Pro is a unique law firm management software because of it’s additional debt collection system. You’ll also have access to a series of tools for case management, billing, accounting, administration, custom reporting, document management, and an integrated payment dashboard. You’ll have to contact their sales team to receive a quote for your law firm.

Hesitant To Get Started?

If you’re hesitant to invest in these law firm management software, you can start by signing  up for a free trial. You can give each system a try and if you find it makes your law firm much more efficient and effective, you can make the investment and purchase it. The following legal management solutions offer a free trial: Clio, Bill4Time, MyCase, Firm Central, FilePro, App4Legal.