Legal Malpractice Claims Level Off as Conflicts and Cyber Claims Rise
In light of these trends, law firms may wish to consider taking steps such as shoring up conflicts protocols, addressing technology security protocols and investigating cyber liability insurance to help avoid becoming a malpractice statistic.
July 17, 2017 at 01:14 PM
11 minute read
Statistics regarding the type, frequency and severity of legal malpractice claims submitted to insurers during 2016 were released at the end of June. From the law firm and attorney perspective, the news is generally good in that the number of malpractice claims has remained relatively steady. For insurers, however, the news is less rosy, because legal defense costs, claimed damages and settlement sums continue to climb.
In its seventh annual survey, Ames & Gough, a risk and insurance adviser to the country's largest law firms, provides data relating to legal malpractice claims submitted last year. The survey includes information obtained by polling nine leading insurance companies that insure approximately 80 percent of the Am Law 100 firms.
While the frequency of legal malpractice claims has remained near constant on a year-over-year basis, it continues to remain well above the prerecession level, perhaps indicating a “new normal.” Notwithstanding this relative stability of claim frequency, claim severity continues to be an issue.
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