Law Firms Coverage Guide
Law firm malpractice (Lawyers Professional Liability) is mandated in many states. Cyber is critical — firms hold privileged client data and are top ransomware targets. Wire-fraud social-engineering claims are surging.
Critical Coverage
Professional Liability (E&O)
Covers claims of negligence or mistakes in professional services
What it covers
Lawyers Professional Liability — claims of negligence, missed statutes of limitation, conflicts of interest, billing disputes that escalate. Mandatory in many states by bar rules.
Common misconception
Solo practitioners think they can self-insure. State bars increasingly publish individual lawyers' insurance status; clients see it.
What it does NOT cover
Intentional misconduct. Personal disputes. Punitive damages (some).
The gap — what happens without it
A missed statute-of-limitations on a personal injury case forfeits a $400K recovery. Client sues firm for malpractice. LPL defends and pays.
What drives your premium
Annual revenue, areas of practice (PI, real estate, corporate = different rates), attorneys, claims, state, prior acts
Endorsements to ask about
Prior acts (covers errors discovered now from old work). Disciplinary defense. Outside-counsel guidelines compliance.
Cyber Liability
Covers data breaches, ransomware, and digital threats
What it covers
Breach response, ransomware (law firms are #1 target), wire-fraud social engineering (rampant in real estate firms), client data exposure.
Common misconception
Solo and small firms think they're 'too small to target.' They're actually preferred targets — less security, valuable data, motivated to pay ransoms quickly.
What it does NOT cover
Unencrypted devices. Unpatched vulnerabilities. Pre-existing.
The gap — what happens without it
BEC scam impersonates a senior partner, instructing wire transfer of $180K from trust account. Without funds-transfer fraud coverage, the firm pays from operating funds. With it, cyber pays.
What drives your premium
Records, MFA, IOLTA holdings, employees, claims
Endorsements to ask about
Funds-transfer fraud / social engineering (critical for law firms). System failure. Reputation/PR.
Important Coverage
General Liability
Covers third-party bodily injury and property damage claims
What it covers
Office premises, advertising injury, third-party injury at firm events.
Common misconception
Firms with frequent client visits underestimate slip/fall exposure.
What it does NOT cover
Professional services. Cyber.
The gap — what happens without it
Client trips on rug — $18K medical. GL pays.
What drives your premium
Office, employees, revenue
Endorsements to ask about
Hired/non-owned auto. Worldwide for international travel.
Employment Practices Liability (EPLI)
Covers wrongful termination, discrimination, and harassment claims
What it covers
Employment claims from staff and associates.
Common misconception
Law firms have above-average EEOC charge rates for harassment and discrimination, partly due to long associate tenures.
What it does NOT cover
Wage/hour. WARN.
The gap — what happens without it
Associate alleges harassment by partner. Defense + settlement: $200K. EPLI pays (though some carriers exclude partners).
What drives your premium
Employees, partners, state, claims
Endorsements to ask about
Partner-on-partner coverage. Wage/hour. Third-party.
Situational Coverage
Directors & Officers (D&O)
Covers personal liability of company leadership
What it covers
Officer personal liability for managing partners; partner-departure disputes.
Common misconception
Partnerships often face partner-buyout disputes that resemble D&O claims at corporations.
What it does NOT cover
Fraud.
The gap — what happens without it
Departing partner sues over buyout valuation — D&O defends with $80K in legal costs.
What drives your premium
Partners, structure, claims
Endorsements to ask about
Partnership disputes coverage.
Not sure what you need?
Text us your trade and state — we'll tell you exactly what coverages apply to your business and shop the market for the best rate.