You are about to hand a lawyer your divorce, your closing, or your lawsuit. Here is a question few clients think to ask first: does that lawyer carry malpractice insurance? In New Jersey, the answer is not always yes -- and if your case is mishandled, it can determine whether there is any money behind the mistake.
Which New Jersey Lawyers Are Required to Carry Malpractice Insurance?
In New Jersey, attorneys who practice through a professional corporation (PC), limited liability company (LLC), or limited liability partnership (LLP) are required to carry legal malpractice insurance. Even when not legally required, choosing an attorney who carries malpractice insurance is generally in the best interest of any client or potential client. Without insurance, a client who suffers harm due to malpractice must sue the attorney personally, often without knowing whether the attorney has the financial resources to compensate them. When an attorney is insured, the malpractice carrier may have funds available to pay a claim (if the alleged malpractice falls within policy coverage), regardless of the attorney’s personal financial situation.
Because of this, whether an attorney carries malpractice insurance is an important factor to consider when selecting legal representation.
While it is not mandatory for all lawyers, insurance can provide an added layer of security that resources may be available if professional errors occur.