Texas lawyers shopping for professional liability insurance may wonder: Why should I pay for a policy with a retroactive date going back years or decades when the statute of limitations will bar claims that are more than two years old?

At first glance, the argument may seem logical. If malpractice claims generally must be brought within two years, why worry about work performed long ago?

The answer is simple: because the statute of limitations is not nearly as predictable or straightforward as many lawyers assume. In practice, claims arising from work performed years earlier are routinely asserted, defended, litigated, and sometimes paid long after the underlying legal services were rendered. And, while the statute of limitations may ultimately provide a defense, it rarely prevents a lawsuit from being filed in the first place.

Claims-Made Coverage Requires Looking Backward

Most lawyers' professional liability policies are written on a claims-made basis.