Why Purchasing Legal Malpractice Insurance Is Always a Good Business Decision As a risk manager for a nationwide legal malpractice insurer, I sure it comes as no surprise that I believe the purchase of legal malpractice insurance is a good business decision. I can also anticipate that at least a few of you reading this would welcome the opportunity to debate with me my claim that it is always a good business decision. In light of this, allow me to make my case; and I will start by sharing the reasons I hear that some lawyers, typically those who practice in the solo and small firm space, decide to go bare. Why would anyone decide to go bare? The rationalizations run the gamut. Some try to justify the decision by declaring that malpractice premiums are beyond affordable. I’ll hear “just look at what doctors
have to pay.” Others decide that if they ever get sued, they’ll just declare bankruptcy in order to avoid having to cover any resulting loss. Then there are those who choose to self-insure thinking the premium savings will more than offset any possible loss. I’ve even had lawyers tell me they’ve chosen to protect their assets in other ways. And then there’s this one. “Having a malpractice policy simply invites claims. No insurance means no one will ever sue me because there’s no deep pocket.” I just shake my head over the naivety of that belief because it simply isn’t true. What’s wrong with that line of thinking? My response to the any of above rationalizations always starts with this question. Knowing that lawyers and
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