Every business owner needs a good policy with options for additional coverage. A lawyer needs several types of business insurance for their practice. Here you will find different options for insurance and find out which kind of coverage you need for yourself, your firm, and your employees.

Lawyers need a Business Owner’s Policy (or BOP) which can combine coverages in:

  • General Liability
  • Commercial Property
  • Business Income Coverage

Optional additions for coverage include:

  • Data Breach Coverage
  • Employee Liability Insurance
  • Property Damage Coverage
  • Professional liability

Other forms of insurance a lawyer may want to bundle include:

  • Worker’s Compensation
  • Commercial Auto Insurance
  • Home-Based Business Coverage

Why do lawyers need liability insurance?

Professional liability insurance provides coverage that can cover the cost of lawsuits and hiring lawyers in case of mistakes made by the firm, such as mishandling confidential information. Professional liability is important, but it does not cover some situations. Fraudulent or criminal acts and lawsuits between lawyers of the same firm (with the same insurance) are two examples.

General liability insurance protects your practice if claims of bodily injury or property damage come against the firm. You can increase the rate of coverage for your liability, if you pay a higher premium, to increase the amount the insurance company will pay for a claim in a year. Premiums for new attorneys are around $500 but can increase to thousands of dollars as they gain experience and inevitably have to deal with more lawsuits.

Commercial property coverage protects the property of the business in case of fire, storms, vandalized buildings, destroyed office property, etc. Business income coverage allows you to cover lost wages if you cannot work because of a natural disaster or other inconvenience.

What else is not included in the Business Owner’s Policy?

They do not include other optional forms of coverage in the Business Owner’s Policy. Every lawyer should have or look into these other forms of coverage, not just for themselves, but for the sake of their employees, should an accident or data breach occur.

Worker’s Compensation gives financial help to employees if they cannot work due to a work-related accident, injury, or illness.  Commercial auto insurance can cover not only your vehicle but an employee’s vehicle if an accident occurs while driving for business reasons.  Data Breach Insurance is necessary for lawyers because of security risks dealing with personal information and sensitive data.

Higher Premiums and Changing Insurance Companies

Some areas of practice have higher premiums on their professional liability, including patents and trademarks, trust and estates, and residential real estate. If you change insurance companies, you need to make sure your coverage continues. You don’t want to lose coverage for services performed before starting the new policy, and it would be wise to purchase an unlimited reporting period.

Get the Coverage you Need

Lawyers should talk to their insurance agents about bundling insurance policies and getting as much coverage as they can because of the inevitability of facing lawsuits, claims, and natural disasters.


If you would to like to discuss your options for business insurance please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:30 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!

Source: Mak, A. (2019, July 18). Professional Liability Insurance for Lawyers: How does it work? Retrieved March 30, 2020, from https://advisorsmith.com/lawyers/professional-liability-insurance-for-lawyers/

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