You will hear lots of complaints about lawyers charging high legal fees. This discourages many people from hiring a lawyer even when they need to. Lawyers can charge you hundreds of dollars per hour and the longer the case runs for, the more expensive it becomes. Here are the major reasons why they are so expensive.
Running a law firm is very expensive. The law firms incur all the costs just like a normal office, like rent, furniture, wages, etc. Law firms that are located in good location incur more expense as the rent is higher in those places. These costs are passed onto the clients. As the legal profession is very regulated, the law firms have to pay many extra fees besides the business cost of running the firm.
Professional indemnity insurance – This liability insurance is must for all law firms. It can be very expensive and depends on the size of the firm. This insurance protects the clients in case the lawyer makes any mistake. The clients will get compensation in such case.
Practicing certificate fees – Lawyers must renew their practicing certificates every year and it costs thousands of dollars to do so. Without renewing their certificates, they won’t be able to practice.
Continuing Professional Development (CPD) – The lawyers must finish at least 10 points CPD every year as part of their continuing legal education. They have to attend seminars and courses which are expensive.
The lawyers must always follow these requirements; otherwise, they will lose their rights to practice. Maintaining these requirements is very expensive.
Being a lawyer is a very demanding occupation. The top law firms hire good lawyers with high salary. There is always demand for lawyers for various causes like accidents, divorce, financial settlements, etc. Good lawyers are difficult to find.
Law education is expensive
It is very hard to become a good lawyer and not everyone is competent enough to become one. Lawyers have to study very hard to go to a good law school and then obtain the certificates necessary to start practicing in a law firm. Good law schools are expensive and the process of becoming a lawyer is very long. They also need to continue their legal education throughout their lives.
The more experience a lawyer has, the more fees he or she will charge. There are lots of things lawyer learns from experience and so their chances of making mistakes become less. The experienced lawyers have more chance of winning a case than the inexperienced ones.
Now you know that the financial costs of becoming a lawyer and practicing law are high. So, clients are also charged high fees so that the lawyers can continue running their law firms.