Lawyers and law firms may soon be required by law to have insurance to cover claims for damages from clients who argue that the services rendered were not worth the cost charged.
While lawyers and law firms in some countries already have mandatory professional negligence insurance cover for such situations, the practice is new in India. If introduced insurance could help reduce court and litigation costs when lawyers are sued. The Law Ministry is consulting lawyers across the country on the proposal.
Such policies usually cover only the negligence of the professional and not any wilful act by the insured. This is essential as the cost of litigation could be high even though the professional is not found responsible for his client’s financial loss due to the advice.
