Skip to content
Law & Legal News
Law & Legal News

  • Home
  • Blog
  • Contact Us
Law & Legal News

Profit and Loss Insurance for Legal Opinion, Here’s the Advocate Response

Eliza, September 9, 2020
Career Options After Law in India - All you need to know | CollegeDekho

In the Indonesian advocate code of ethics, every lawyer is prohibited from guaranteeing to his client that the case he is handling will win. Included in case handling is the role of advocates in providing legal opinion in carrying out their profession. It could be said, even from the advocates could have missed.

However, in the same code of ethics, it is also stated that advocates are not allowed to provide information that can mislead clients regarding the cases they are handling. If it turns out that a mistake makes the client suffer a loss, it is still a matter of debate whether it is included in the “misleading” category or not.

Reading this opportunity, insurance companies issue insurance products for professional services including legal services

One that we have discovered is an insurance policy that helps protect professionals from legal action by clients or other third parties. The question is, is it necessary for a law firm to insure that it is safe from a lawsuit from a client who feels “misled” to the point of experiencing a loss?

Luhut M.P. Pangaribuan, a senior advocate as well as an academic at FH UI, who has handled various corporate cases in Indonesia, thinks that this insurance is not needed by lawyers. “The opinion is not binding in nature, it must be followed up with a decision, it does not need to be guaranteed,” he told.

Luhut assessed that the principle is not binding for the client so that there is no risk for advocates as service providers. As long as advocates have mobilized their best in accordance with applicable legal procedures until finally producing recommendations for clients, it is not appropriate for advocates to be blamed because the client thinks what is given is not accurate.

“Unless there is something else other than just giving an opinion, or there is lies in it,” continued Luhut.

In the event that the data used by the advocate to convince the client is fake so that it misses, Luhut calls it a fraud. This deception is beyond the reach of the code of ethics and can be sued for pure crime or a suit for default.

“If it causes losses due to trickery, of course you can,” he said

Even so, Luhut acknowledged that the need for insurance for advocate legal services arose because of the fact that there were parties trying to sue the advocate profession. In such a context, he understands that eventually an insurance product develops that welcomes market opportunities.

Kukuh Komandoko Hadiwidjojo, an advocate who also practices as a capital market legal consultant, considers the need for the use of insurance at this time. “Actually, not only with regard to profession, everything that the profession does should be covered by insurance,” he told.

In professional practice, continued Kukuh, advocates are full of risks

Although an advocate will definitely do what is best for the client, it is not necessarily able to protect against all possible losses. “It is possible to cause losses, including,” he continued.

He gave an example that an advocate could neglect the making. In the case of losses incurred in connection with a large value transaction by a client, of course, advocates can be dragged into responsibility. The impact, Kukuh said, would be higher for advocates because the insurance premium cost component was also charged. “Advocates feel more comfortable in doing their job,” he added.

One of the names of insurance that is known by lawyers to lawyers in Australia is (PII). This insurance is not only used for legal services, but also for other professions such as doctors and accountants. Especially for advocates, this type of insurance is only reserved for.

In Indonesia, there is one insurance company that sells similar insurance products. This policy provides the main protection in the form of compensation for losses resulting from civil liability claims from clients or other third parties. Other protections can be adjusted by the buyer of the policy, such as security costs of defense, guarantees of attendance fees in investigations, guarantees for slander and unintentional defamation.

A number of law firms in Indonesia have faced a lawsuit case. Some of the reasons for the lawsuit were because the client was not satisfied with the legal opinions given by the lawyers’ offices.

General Articles

Post navigation

Previous post
Next post

Related Posts

Comprehensive Guide to Law and Legal Information

May 15, 2024

Understanding the complexities of the legal system is crucial for navigating the myriad of legal challenges one may encounter in life. Whether you’re dealing with personal legal issues, business regulations, or societal laws, having a foundational knowledge of legal principles and processes is essential. This guide provides a thorough overview…

Read More

Are You In Troubles? Reach For A Good Lawyer

June 22, 2022

If you’ve found yourself in trouble, Peterson Legal PLLC can help you resolve your issue. The court system and financial system can be complex, but attorneys from Peterson Legal will explain the process in layman’s terms. Unlike many lawyers, Peterson Legal’s attorneys don’t judge their clients – they understand the…

Read More

Some Common Tax Mistakes to Avoid When Creating an Estate Plan

February 25, 2021

Creating an estate plan is one of the essential things to safeguard your assets and relationships. While it’s important to have a legally valid estate plan and will, there is no denying the fact that it’s a tedious process. Any mistake in your estate plan can render your will invalid….

Read More

Recent Posts

  • Peace of Mind: Why You Need an Attorney After an Accident
  • Legal Separations: Managing Divorce and Child Support Through a Lawyer
  • What to Know About Personal Injury Attorneys and a Motorcycle Wreck
  • Legal Landscape: How a Lawyer Can Help You with Your Case
  • Modern Workplace: Understanding Workers’ Compensation Law

Categories

  • Attorney
  • Blog
  • Car Accident
  • General Articles
  • Law Legal Information
  • Lawyer
  • Legal Advice Law
  • Legal Capacity Law
  • Legal Ethics Law
  • Legal Family Law
  • Legal Force Law
  • Legal Immigration Law
  • Legal Law Definition
  • Legal Law Dictionary
  • Legal Law Firm
  • Legal Law Help
  • Legal Law Jobs
  • Legal Law Lawyers
  • Legal Law Recruitment
  • Legal Malpractice Law
  • Legal Marijuana Law
  • Legal Tender Law

About us

  • Home
  • Contact Us
  • Disclosure Policy
  • Sitemap

administration advice agency assist attorney attorneys authorized branch dalam dallas digital disclosure divorce enterprise family forms group household indonesia information istilah judicial juvenile kinds knowledge lawyer legal legal advice legislation library management neferland paperwork policy portal professional professionals program regulation software students types useful varieties websites

©2026 Law & Legal News | WordPress Theme by SuperbThemes