Credit: Vitalii Vodolazskyi/Adobe Stock Legal Malpractice Claim Values Reach an 'All-Time High' in Last Year
Insurers surveyed by risk management advisory firm Ames & Gough named conflicts and drafting errors as the two types of claims leading to the largest settlements.
May 15, 2024 at 02:45 PM
6 minute read
The original version of this story was published on The American Lawyer
What You Need to Know
- Legal malpractice claim verdicts and settlements are at an all-time high, according to a new survey from risk management advisers Ames & Gough.
- The survey, which examined trends at 13 of the world's largest law firm insurers, found that social inflation factors were inflating malpractice settlements and verdicts.
- Insurers expressed further concern about cyber risks and breaches being levied against professional liability insurance rather than cyber-specific policies.
Legal malpractice suit payouts have reached an "all-time high" despite claims arising with similar frequency year over year, according to a report recently released by risk management advisory firm Ames & Gough.
The firm spoke with 13 global law firm insurers, finding that a majority had paid out claims worth over $100 million over the past two years and were seeing an uptick in claim severity. The survey focused on larger insurers representing the majority of the Am Law 200, according to Ames & Gough senior vice president and equity partner Eileen Garczynski, including companies such as ARGO, Liberty, Crum & Forster, and Berkley Select.
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