Insurance Considerations For Law Firms

To help address their exposures and potential losses, law firms should consider the following types of coverage:

• Professional liability coverage—If a client alleges that a law firm’s staff provided negligent services or made other professional mistakes, this coverage—also called errors and omissions insurance—can help pay the resulting expenses.
• General liability insurance—This coverage can assist if a law firm is held legally or financially liable for injuries, harm or damage to another party or their property.
• Employment practices liability (ELP) coverage—In the event that a law firm faces legal action alleging workplace discrimination or harassment, wrongful termination or discipline, failure to employ or promote, or other unlawful employment practices, EPL coverage can help reimburse the associated legal defense costs.
• Cyber liability insurance—This coverage can help compensate certain first- and third-party expenses that may result from a law firm experiencing a data breach, ransomware attack or other cyber incident.
• Commercial Property coverage—This coverage can help pay the resulting repair or replacement costs if a law firm’s property—such as office space, furniture, equipment and documents—gets damaged, stolen or destroyed due to a covered event.
• Business interruption insurance—If a law firm is forced to temporarily close its doors due to direct physical damage caused by a covered event, this coverage can help compensate the firm’s typical operating costs (e.g., business income, commercial mortgage and tax payments, lease and loan expenses, and staff payroll) during the closure.
• Auto insurance including hired and non-owned auto (HNOA) coverage—This coverage can assist with expenses stemming from a law firm’s staff getting involved in accidents on the road while operating rental or personal vehicles for business purposes.
• Workers’ compensation insurance—If a law firm’s staff get injured or become ill on the job, this coverage can help pay those professionals’ medical treatment and rehabilitation costs, as well as their lost wages.
• Commercial Crime coverage—Also known as fidelity insurance, this coverage can help reimburse a law firm for losses caused by theft, staff dishonesty and other commercial crimes.
• Inland marine insurance—If a law firm’s business property, specifically legal documents and audio and video equipment, is damaged due to a covered event while being transported or temporarily stored off-site, this coverage can help pay the associated recovery costs.
• Umbrella and excess liability coverage—If a law firm’s claim costs exceed the limits for its primary liability policies, this coverage can increase those limits. Furthermore, umbrella policies can broaden existing policy coverage.

For a thorough review of your business insurance portfolio, contact us today.