Insurance for Lawyers & Law Firms
Protect your practice with insurance for lawyers and law firms
Attorneys protect and defend their clients. Choosing the right law firm insurance helps law offices do the same for their practice. That’s why it’s so important to partner with a business insurance company that understands the unique risks that law firms face every day.
With Travelers, law practices have access to risk control tools and resources, efficient claims handling and proactive service designed to safeguard their firm’s financial health.
All lawyers can benefit from law firm insurance
Small business coverage for law firms is essential for all types of lawyers, from solo attorneys to boutique law firms and fast-growing practices. To ensure that you have appropriate coverage, determine your firm’s specific needs, including law firm liability insurance, property insurance, business income insurance, attorney malpractice insurance, legal counsel insurance and more.
Coverage options may be customized for various types of legal professionals, such as:
- Law firms
- Law offices
- Solo attorneys
- Pro bono lawyers
- Private practices
- Counselors at law
- Bankruptcy attorneys
- Tax lawyers
- Patent attorneys
- Family law & estate law offices
- Real estate attorneys
- Corporate law offices
- Personal injury attorneys
- Criminal law practices
Products & solutions
Insurance coverage law firms should consider
A well-rounded law firm business insurance plan can help attorneys mitigate the common risks from claims related to general liability, property damage, business income loss, large claim verdicts and more. Here are the key small business coverages that lawyers should consider:
Business owner’s policies (BOPs) – BOPs, the core business coverages, combine general liability, property and business income insurance to create a strong foundation of business protection.
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- General liability insurance – Covers third-party claims for damages because of bodily injury, property damage or personal injury, such as libel and slander.
- Property insurance – Protects a law firm’s office space, equipment and critical business assets from damage caused by perils like fire, theft or certain natural disasters.
- Business income insurance – Helps cover lost revenue and ongoing expenses if the law practice experiences a temporary shutdown due to a covered event.
Professional liability coverage – Guards the law firm against claims caused by acts, errors or omissions in the rendering or failure to render professional services.
Workers compensation insurance – Helps cover costs, including medical, disability benefits and lost wages, for employees who get injured on the job.
Cyber liability insurance – Covers financial losses that result from cyber breaches of clients’ and employees’ personally identifiable information (PII).
Umbrella insurance – Gives law offices extra protection beyond standard liability policies for large, unexpected claims.
Commercial Auto Insurance – Covers a law firm’s owned, financed or leased vehicles used for business-related travel.
While some law firms may focus on the core BOPs for their insurance needs, evolving risks in the legal industry have made it crucial to explore additional coverage options.
Essential law firm coverages beyond core business insurance policies
The rising number of professional malpractice lawsuits, cyberattacks and employee injury claims poses serious financial risks to law offices. Insurance solutions designed to address the costs of these threats can help law firms thrive as they navigate today’s complex legal landscape.
Professional liability insurance for legal malpractice claims
Even the most diligent attorneys may face claims of malpractice or negligence. Law firm professional liability insurance helps cover the costs of claims arising from acts, errors or omissions. Having this coverage helps to shield law firms from the significant expense of both lawsuits and reputational damage.
Key benefits of professional liability insurance can include:
- Claim services and pre-claim assistance.
- Crisis event expense reimbursement coverage.
- Network and information security offense coverage.
- Automatic acquisitions coverage.
- Expanded professional services coverage.
Cyber insurance can help protect your law firm
Law firms handle vast amounts of sensitive client data, making them prime targets for cyber threats. This is why law offices should consider cyber insurance, which can help cover the cost of losses from data breaches and cyberattacks.
Key benefits of cyber liability insurance can include:
- Coverage for the costs of notifying affected clients and employees.
- Data recovery and system repairs coverage.
- Coverage for litigation and regulatory defense expenses.
- Business interruption and cyber extortion damages coverage.
- Forensic investigation and crisis management expense coverage.
Workers compensation insurance covers on-the-job injuries
Law firms are workplaces with daily risks of injury to their employees, from improper desktop ergonomics to car crashes to accidental slips, trips or falls. When an employee gets injured on the job, workers compensation insurance helps cover medical expenses, lost wages and rehabilitation costs. This type of insurance is crucial for maintaining compliance with legal requirements and for safeguarding employees and the firm’s financial stability.
Key benefits of workers compensation insurance can include:
- Medical expense coverage for work-related injuries.
- Income replacement for injured employees.
- Legal protection against lawsuits alleging unintentional employee injury.
- Coverage for rehabilitation and return-to-work programs.
Did you know?
#1
cause of liability claim loss for law firms are office slips and falls.1
70%
of legal malpractice claims are filed against firms of 1-5 lawyers.1
#1
concern of law firms is cyberattacks, with 60% of firms that report an attack having been victimized more than once.1
Types of claim incidents
Attorneys face unique risks due to the specific nature of their work. Here are some examples of the most common types of claims that law firms encounter:
- General business risks – Unforeseen events such as office property damage, natural disasters or business interruptions can greatly impact law firm operations.
- Professional liability claims – Even one missed filing deadline or legal oversight could result in a costly malpractice claim.
- Cyber incidents – A cyber breach exposing client records may lead to lawsuits and regulatory penalties, costing firms hundreds of thousands of dollars or more in damages.
- Workers compensation claims – An administrative employee suffering from a work-related injury may require medical treatment and time off, leading to lost productivity and potential legal challenges.
The potential for incidents like these highlights the importance of working with an insurance company that offers a wide array of coverage options, resources and expertise.
How are law firm insurance costs calculated?
The cost of insurance for law firms depends on factors like location, firm size, claims history, number of employees and more. A solo attorney working from home will typically have different insurance costs and needs than a firm with multiple attorneys, employees and a leased or owned office space. Additional considerations may include:
- Types of legal services offered and associated risk levels.
- Prior claims history, which may impact premiums.
- Cyber risk exposure based on data security measures in place.
- Annual revenues and number of employees.
- Value of business assets requiring property insurance coverage.
Working with an insurance professional can help law practices make informed decisions about their firm’s specific coverage requirements and costs.
Defend your legal practice with law firm business insurance
Whether it’s a professional liability claim, damage to your office space, cyberattack, workplace injury or business disruption, practicing law comes with inherent risks. This is where law firm insurance delivers a strong defense.
When you choose the type and amount of insurance coverage that fits your firm’s needs and budget, it can help provide financial protection, business stability and peace of mind. To explore law firm and small business insurance policies and resources tailored to your practice, contact a Travelers agent today.
Sources
1 Travelers Office Business Class Survey (December 2024)
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