After a lifetime of briefs, deadlines, and client emergencies, many retiring lawyers suddenly face a new kind of challenge: navigating the legal risks that follow them after they stop practicing. The courtroom fades, the caseload shrinks, but one thing remains unchanged: liability exposure.
It may surprise many attorneys to learn that the work they completed years or even decades ago can still generate a claim. In a climate where malpractice defense costs continue to rise, the decisions lawyers make in the final year of practice often determine how well their legacy is protected.
However, if you are thinking about switching your professional liability carrier, we recommend that you reconsider. While a lower premium may seem appealing, that decision may jeopardize your protection when it matters most.
Most professional liability policies, often referred to as Errors & Omissions (E&O) or Lawyers Professional Liability (LPL) insurance, operate on a claims-made basis. That means they provide coverage only if the policy is in force when a claim is made, regardless of when the error occurred.
The date you first purchased your policy becomes your “prior acts” date. As long as you maintain continuous coverage, you remain protected for all work done while your policy is active. For a retiring lawyer, that could represent many decades of legal work, all covered under one legacy policy. Discontinuity, such as switching carriers or canceling mid-term, may break that chain of coverage.
When you retire, you must ensure that your prior work remains protected, potentially forever. That is why an extended reporting period, an endorsement that keeps your coverage alive for claims made after retirement, is critical. Many insurers charge a heavy premium for it, but firms that maintain long-term continuity with their carrier often receive favorable terms.
Also read: What is a Claims-Made Policy? Understanding Legal Malpractice Insurance Coverage
Recent data from professional liability insurers show that the cost of defending malpractice claims continues to rise. According to a recent industry survey, ten of eleven major insurers reported increased defense-counsel costs in the last year, ranging from 2% to 10%. (Business Wire)
Moreover, while the frequency of claims has remained relatively stable according to a 2023 survey, the severity (meaning the size of settlements or defense costs) has increased significantly. (Business Insurance)
Given the backdrop of rising defense costs, growing claim severity, and persistent risk in transactional and estate work, retiring lawyers face more exposure than before.
Even if you are closing your practice or handling fewer matters, new malpractice claims can surface years later due to:
If you switch carriers, you may obtain a lower premium now, but you might sacrifice extended coverage for decades of prior work.
Also read: Proactive Strategies for Better Risk Management for Law Firms
A lower-cost policy may seem attractive. But switching carriers often means starting a new prior-acts date. That means only the work done after the switch is covered, not the decades of legal work already completed. Without an extended reporting period from your original carrier, past cases may be exposed.
Even worse, many insurers require you to have been on the policy for a full term (often a year) before offering an extended reporting period endorsement. If you cancel too early (for instance, after finishing a few remaining cases), you may disqualify yourself.
Furthermore, different insurers may not offer the same endorsements or extensions, as some may lack coverage for regulatory proceedings, crisis events, subpoena assistance, or defendant reimbursement benefits. For a retiring lawyer, that gap may prove disastrous if a claim arising from past work lands after retirement.
Retirement should mark the beginning of a calmer, less stressful chapter, not the start of new uncertainties. For retiring lawyers, the smartest step you can take is to preserve the protection you have built over your career. Staying with your current carrier ensures your prior acts remain intact, your extended reporting period remains available, and your past work stays defended long after you close your office door.
If you want support built specifically for solo and mid-sized firms, consider Protexure Lawyers Professional Liability Insurance. Our policies defend you when a client files a claim, cover common issues such as conflicts of interest or missed deadlines, and protect you from the high cost of legal defense. We also offer competitive rates and dedicated service designed for small practices.
Most importantly, after three consecutive years with Protexure, retiring attorneys are eligible for a free extended reporting period, the key to safeguarding the work of an entire career. Instead of worrying about future claims or unexpected legal costs, you gain lasting protection and the peace of mind you have earned.
Retirement should feel rewarding, not risky. If you are preparing to transition out of practice, explore how Protexure Lawyers can help protect your legacy and support you long after your final case is closed.