Things to know about professional liability insurance lawyer

According to the Law on lawyers, law practice organizations, lawyers practicing as individuals must buy professional liability insurance for practicing lawyers at their organizations. So what is the lawyer’s professional liability insurance?

The Heavy Hitter

Professional liability insurance, also known as professional liability insurance for legal consultancy activities under the Insurance Business Law is a compulsory insurance prescribed by law on insurance conditions. It is The Heavy Hitter that you can believe in.

In the practice of law practice, there have been many cases where customers have complained about the damages arising from the illegal legal advice of lawyers, about the lawyers losing valuable documents and vouchers. Therefore, the need for lawyers to buy professional liability insurance not only comes from the guarantee of compensating customers when lawyers give wrong advice, wrong professional responsibilities due to careless or contemptuous, but also enhance the social prestige of its own lawyers and law practice organizations, creating trust in customers for advice.

Lawyer professional liability insurance

The terms, liability limits, exclusion points and other conditions are set out in the Insurance Application and Certificate of Insurance and on the basis of the insured’s full payment of insurance. Expenses paid by the insured with written consent of the insurer for defense or settlement. Cases considered to be the liability of the Insurance Company to pay compensation to the insured, may include:

  • Liability arising out of insults or slander due to the documents or words of the insured person, or the employee of the insured.
  • Liabilities arising from loss, confiscation or damage to documents1 in the custody or control of the insured or from any operating establishment or in the process of handing over to the recipient or their representative anywhere by post.

Exclusion of insurance liability

Complaints about losses with different consequences stem from an act of negligence, omission or confusion, but will not be compensated by the insurance company for any claims arising from:

  • Careless actions, errors or negligence related to work and professional activities that exceed the professional capacity of a lawyer in accordance with the law and ethical rules
  • Arrangement or recommendation whether there is a reason or not – related to real estate, financial and commercial issues, liability insurance will not be applied if the claim of compensation arises from the word. Wrong advice on tax-related matters
  • Misinterpretation or misapplication or failure to comply with foreign legal regulations
  • Violation or breach of responsibility related to the management of books, accounting or financial transfer or embezzlement behavior of employees hired by insurers
  • Claims for compensation arising from the activities of the insured as the head or member or legal expert of the Board of Directors, the Supervisory Board of the private company, the club Associations
  • Defame or slander
  • Carelessness, errors or negligence of the insured when buying or maintaining insurance contracts
  • The insured is insolvent or bankrupt

Losing documents containing any content writing, printing, or copying by any means or electronic information or stored in lost computers or documents to lose or destroyed while entrusted, or within the scope of management, care or control of the insured. Financial losses directly, indirectly or considered to be caused by or attributable to, or arising from air, water or soil pollution.