Multistate Professional Responsibility Exam Practice Question
A lawyer launches a solo practice without a professional liability policy to reduce overhead. The lawyer plans to send clients a notice stating there is no coverage and believes that notice alone avoids exposure to claims. What measure is more effective at reducing potential liability?
Purchase and maintain a policy covering practice-related risks
There is no liability concern.
Send each client signed disclosures acknowledging the lack of coverage
Use an agreement requiring clients to waive claims for professional errors
Obtaining professional liability coverage provides financial protection when a claim arises, covering defense fees and possible damages. Disclosures alone do not prevent a claim or limit responsibility for errors. An arbitration clause does not typically eliminate liability, and requiring a waiver of claims is often unenforceable in many jurisdictions, especially for malpractice. Proper insurance coverage is a key component of a risk prevention strategy.
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Multistate Professional Responsibility Exam
Competence, legal malpractice, and other civil liability
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