Lawyers Professional Liability Insurance

Conduct a thorough law firm risk assessment to identify areas of your business that are most at risk and enable you to focus your resources on the areas that matter most. Consider the following factors:

• Firm size and structure: Number of attorneys, paralegals, and support staff
• Practice areas: Different specialties carry different risk levels (securities, intellectual property, and real estate typically have higher risks)
• Client base: Types of clients and matters you handle
• Physical location: Office space owned vs. leased, geographic location, and foot traffic
• Technology and data: Volume of sensitive client information stored digitally
• Revenue and growth projections: Current income and anticipated business expansion

Start by researching what insurance for lawyers your firm has to have, then look for any additional policies that might apply to your firm. Often legally required coverage includes workers' compensation, commercial auto insurance (if your firm owns vehicles), Professional liability insurance (required in some states). We also highly recommend cyber liability, general liability, employment practices liability, commercial property, Business interruption insurance and commercial umbrella insurance for lawyers.

Work with an insurance agent who has experience working with businesses and law firms specifically, as they'll help you decide which policies you need, how much coverage is best for your firm, and can guide you through the process with expertise in the legal industry. We also recommend looking into customer reviews on forums, industry ratings from J.D. Power and financial strength ratings agencies like A.M. Best, and testimonials specific to lawyers and law firms. You should also look into state and other American Bar Association programs in addition to traditional providers.

Receive quotes from several carriers that are apples to apples in terms of coverage limits to have a true comparison of rates. We recommend both applying online, using comparison sites, independent agencies and captive agents to receive your quotes since pricing may differ between them.

We recommend that you get a copy of the policy document before buying. Review your policy limits, inclusions, and exclusions, leaving a little wiggle room to ensure your insurance continues to meet your needs even if you experience an increase in business

Key elements to compare for any lawyer business include:

• Coverage limits: Per-occurrence and aggregate amounts
• Deductibles: Amount you pay before insurance kicks in
• Exclusions: What's not covered under each policy
• Policy definitions: How terms like "claim" or "occurrence" are defined
• Defense costs: Whether they're included within or in addition to policy limits
• Consent to settle: Whether your consent is required for settlements
• Premium costs: Monthly or annual payment amounts
• Endorsements: Additional coverage options or restrictions
• Prior acts coverage: Protection for past work before the policy start date
• Coverage triggers: The specific event that activates your insurance coverage, either when a claim is made against you (claims-made) or when the incident occurs (occurrence).
• Reporting requirements for claims: The specific procedures, timelines, and conditions you must follow to notify your insurance carrier about claims.
• Policy renewal terms: The conditions, procedures, and timelines that govern how your insurance policy continues from one period to the next,
• Retroactive dates: The earliest date for which a claims-made policy will provide coverage for alleged errors or omissions, determining whether your past work is protected.
• Geographic limitations: Restrictions on where covered legal services can be performed or where claims can arise for the policy to provide coverage.
• Professional services definitions: The specific description in your policy of what types of legal work and activities are covered

Many law firms can save up to 25% by bundling multiple coverage types with most companies. For example, you can save a significant sum by getting a BOP insurance which can include general liability, commercial property and business interruption policies all in one. The American Bar Association (ABA) offers members access to valuable savings as well specific to professional liability insurance, bundles through state programs and other additional benefits.

Once you found the right fit, buy immediately and get proof of insurance for your law firm or practice to ensure you don't have a lapse in coverage and meet requirements. Keep documentation of all your policy's terms and conditions to ensure that in the case of a claim you can prove you're covered if there is a dispute.

Your coverage needs change over time, so it is natural to consider different levels of coverage as your law firm or clientele grows. You should also notify your insurer of any additional changes in your business structure such as new types of business areas you are in (law client types), new additions to your team (like an attorney) or any additional office locations as it applies to your coverage. This will ensure your policy reflects the coverage you need and that you are able to get reimbursed properly for any claims you make in the future.