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.
Use an agreement requiring clients to waive claims for professional errors
Send each client signed disclosures acknowledging the lack of coverage
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.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What is professional liability insurance?
Open an interactive chat with Bash
Why are disclosures or waivers of liability generally insufficient?
Open an interactive chat with Bash
What are the risks of not having professional liability insurance for a lawyer?
Open an interactive chat with Bash
Multistate Professional Responsibility Exam
Competence, legal malpractice, and other civil liability