If you're not completely familiar with legal insurance, you’re not alone. Misconceptions about how it works – and how it benefits attorneys – are common across the legal industry.
Understanding the reality behind these myths can help you evaluate whether joining a legal insurance network fits your practice goals and growth strategy.
Why misconceptions about legal insurance persist
Legal insurance is still evolving in how it’s understood within the profession. Many assumptions are based on outdated models or confusion with other types of legal service offerings.
At the same time, demand for legal services continues to outpace actual attorney engagement, meaning there is a significant opportunity for attorneys who better understand how access models like legal insurance work.
Myth 1: It's malpractice insurance for attorneys.
Reality: Legal insurance serves an entirely different purpose.
Legal insurance helps individuals access affordable legal services, similar to how health insurance helps patients access medical care. It connects attorneys with people who actively need legal help. For attorneys, this means:
- A steady referral channel
- Opportunities to build long-term relationships
- Exposure to clients who may not otherwise seek legal help
Myth 2: Legal insurance is basically the same as prepaid legal.
Reality: Modern legal insurance is far more comprehensive.
The phrase "prepaid legal" often suggests limits and restrictions – only a few hours' worth of attorney fees are covered, or the people using the service only need one contract done or want to talk to an attorney once over the phone.
Legal insurance provides comprehensive coverage for more than one hundred legal issues and additional services at a discounted rate. Plan members use attorneys' services regularly (not just once) and attorneys are compensated by ARAG for covered services they provide. Plus, because insurance is a regulated industry, attorneys and clients can rely on the highest standards of service, ethics and accountability.
Myth 3: There are fees to join.
Reality: Many legal insurance networks, including ARAG, do not charge attorneys a membership fee.
No, there is no fee for an attorney to become an ARAG Network Attorney. Instead:
- Attorneys agree to a structured fee schedule
- In exchange, they gain access to referred clients
- Payment is typically streamlined for covered services
For many attorneys, the tradeoff between structured fees and consistent referrals results in measurable business value.
Myth 4: Legal insurance plan members are bad clients.
Reality: Legal insurance clients are often more prepared and engaged.
Some people who need attorneys have a "one-and-done mentality," but people with legal insurance are more likely to establish an ongoing relationship with attorneys and use them for future services. Many also return for additional services, creating opportunities for ongoing client relationships, non-plan legal work and referrals to friends and family members
Myth 5: Being part of a legal insurance network won't drive revenue.
Reality: Many attorneys report measurable growth after joining a legal insurance network.
Legal insurance can support revenue by introducing new clients who may not have found your firm otherwise, reducing time spent on marketing and lead generation and creating referral opportunities from satisfied clients. It can also help fill gaps in demand, particularly for solo practitioners and small firms seeking a new stream of clients.
Attorneys have told us that they do see an impact on their business after joining ARAG. For example, ARAG Attorney John Wachsmann of Denver, Colorado, states, "It's been tremendous for our bottom line. It's clients we would not have had otherwise and if we do a good job for them, we've had referrals from those clients for other non-plan clients."
Jena Maxwell, an ARAG Attorney from Seattle, Washington, adds, "The legal world is changing and attorneys are fighting for business, so having that additional way to get clients and get your foot in the door is huge."
How legal insurance fits into a modern law practice
The legal industry continues to shift towards greater accessibility, consumer-driven expectations and alternative legal service models. Legal insurance sits at the intersection of these trends, helping attorneys expand their reach, improve client acquisition efficiency and build sustainable pipelines without relying solely on traditional marketing.
Hint Component: After reading these myth busters, are you interested in learning more about how legal insurance can help you and your practice gain more clients and increase your revenue?
Visit ARAGlegal.com/attorneys today to learn more about the benefits of joining the network.