Professional liability insurance – this legal term is used in the area of Insurance Law. It refers to an instrument, used by bona-fide lawyers to transfer the risk of damaging the interests of their clients during work (in cases of malpractice, negligence, errors, etc.), towards insurance company, to which they pay regularly premium. Basically this is a necessary type of insurance, required by the local Lawyers’ Bar for all practicing independent attorneys. The professional liability coverage gives them and their clients the security that if for some reason the lawyer’s work cause damages due to wrongful action or negligence, the client will be satisfied. Another similar term is “business insurance”.

*Note it is advisable to ask a lawyer if they have got business insurance, before engaging them to do work on your behalf.

** Bear that independent bona-fide lawyers do not practice law for free; their personal advocacy is paid, simply because they have expenses to run business, like keeping professional liability insurance. So when asking a lawyer for their legal advice, you should pay them for their opinion and legal advice/representation; it is the same situation like when you visit a doctor and pay for their competent diagnose and accurate medical treatment.