I don't need professional liability insurance because ...
Lately I have read several statements from attorneys that begin with these words. The only possible correct ending to this statement is ... I do not practice law. Otherwise you better get yourself covered - ASAP!
Two common reasons I see given for not having insurance are (1) I do not do litigation and (2) I have no assets. Seriously! I have no idea where all these attorneys got idea that they are not going to be sued for malpractice because they are not litigators or have no assets.
You do not litigate. Well, I have defended many attorneys whose alleged malpractice arose from transactional work. If you do not think you will be sued for screwing up a will, trust, contract, or licensing agreement, you are not thinking at all. I have seen attorney's sued on the basis of verbal advice alone. I have even seen an attorney sued by one of her deceased father's clients!
You have no assets. How exactly do you plan on paying another lawyer to defend you in a costly malpractice action? And let me tell you, these can get costly. Please do not tell me that you are going to defend yourself. How will your law practice succeed if you are spending a year of your billable life defending yourself, pro bono?
Plaintiffs are just not going to disappear because you cannot afford an attorney or because you think you are judgment proof. You are not judgment proof. Please think harder, because most likely you have some assets. Many times the Plaintiff is angry and irrationally wants your blood. This Plaintiff is not going away. What if the Plaintiff files a complaint with your state bar association? How are you going to defend yourself? You cannot afford an attorney and you cannot afford to not hire an attorney.
You really need to invest in professional liability insurance.
