This paper focuses on all the key aspects of lawyer’s professional liability insurance, with special attention being given to those aspects which cause potential practical misconceptions and doubts. Namely, the General Conditions of Lawyer’s Professional Liability – introduced in the Croatian legal system in 1994 and one of the basic legal sources for this type of insurance – are outdated and in certain parts not in accordance with the current laws. Moreover, certain provisions of the aforementioned Conditions are somewhat vague and appear to be in conflict with each other, which may lead to misinterpretations in terms of their application. Since the mentioned issues raise numerous questions both within the area of legal theory and legal practice, the goal of this paper is to point out the problematic aspects of the mentioned General Conditions both through the examples of relevant court practice and legal expert analysis. Besides this, within the context of the potentially problematic provisions the paper also discusses terms and conditions of insurance companies. Additionally, the paper also provides examples of comparative legal solutions – some of which can serve as an excellent basis for the necessary changes to the General Conditions and the applicable legal provisions. Finally, the paper also showcases an interesting study by the Legal Services Board (United Kingdom) which analyses the degree to which general public as users of legal services is familiar with this type of insurance.